Answer:
A. $500
C. 7 percent
Step-by-step explanation:
Your problem follows the format of the Simple Interest Formula.
The formula is described as follows: A = P(1 + r*t)
Where P = initial value
r = interest rate as a decimal
t = amount of time.
In your equation of A = 500 ( 1 + 0.07 t )
we can see that 500 represents the P value which is the initial value of the investment.
We can also see that the rate is 0.07. Then converted from a decimal to a percent would be 7 percent.
