Respuesta :
The given parameters in the question are
[tex]\begin{gathered} Deposit=A=P.V=\text{ \$650} \\ \text{rate}=R=7.1\text{ \%} \\ \text{time =t=2 years} \end{gathered}[/tex]The formula to calculate the future value is given below as
[tex]\begin{gathered} \text{future value=present value +simple interest} \\ F\mathrm{}V=P\mathrm{}V+I \end{gathered}[/tex]The formula for simple interest (I) is
[tex]\text{Interest (I)=}\frac{\text{ P}\times R\times T}{100}[/tex]Substituting the values, we will have the interest to be
[tex]\begin{gathered} I=\frac{650\times7.1\times2}{100} \\ I=\frac{9230}{100} \\ I=\text{ \$92.3} \end{gathered}[/tex]To calculate the future value,
[tex]\begin{gathered} F\mathrm{}V=P\mathrm{}V+I \\ F\mathrm{}V=\text{ \$650 + \$92.3} \\ F\mathrm{}V=\text{ \$742.30} \end{gathered}[/tex]Hence,
The future value of the investment after two years will be = $742.30
