Question 1129443
I=prt=40000*0.07*15=$42,000 of interest
But the principal is also part of this, so the total will be $82,000


Simple interest compounded (not the question) would be P=Po(1+r)^15
P=40000(1+.07)^15, rule of 72 would say this will double in 10 years, so expect answer to be well over $80,000 but doesn't double twice, so below $160,000
$110,361.26  Compounding matters!