An investment of $25,000 pays 7% (simple) annual interest. What will be the total value of the investment in 10 years? Give your answer in dollars to the nearest dollar.

Answer: the total value of the investment in 10 years is $42500

Step-by-step explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal

R represents interest rate

T represents time in years

I = interest after t years

From the information given

T = 10 years

P = $25000

R = 7%

Therefore

I = (25000 * 7 * 10) / 100

I = 1750000/100

I = $17500

Therefore, the total value of the investment in 10 years would be

25000 + 17500 = $42500