Using the interest formulas, it is found that the values of the investment are given as follows:
Simple interest is used when there is a single compounding per time period.
The amount of money after t years in is modeled by:
[tex]A(t) = P(1 + rt)[/tex]
In which:
In this problem, we have that the parameters are as follows:
P = 9000, r = 0.07, t = 40.
Hence:
[tex]A(t) = 9000(1 + 0.07 x 40) = 34200[/tex]
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
n is the number of compounding, for quarterly n = 4, then:
[tex]A(t) = 9000\left(1 + \frac{0.07}{4}\right)^{4 \times 40}[/tex]
[tex]A(t) = 144461[/tex]
[tex]A(t) = Pe^{rt}[/tex]
Hence:
[tex]A(t) = 9000e^{0.07 \times 40} = 148002[/tex]
More can be learned about the interest formulas at https://brainly.com/question/25296782
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