Answer:
FV= $6,750
Step-by-step explanation:
Giving the following information:
Initial investment (P)= $5,000
Interest rate (r)= 5% simple interest
Number of periods (t)= 7 years
To calculate the future value of the investment, we need to use the following formula:
FV= (P*r*t) + P
FV= (5,000*0.05*7) + 5,000
FV= 1,750 + 5,000
FV= $6,750
