You plan to invest $6,500 for three years at 4 percent simple interest.What will your investment be worth at the end of the three years?

Question

Quizplus · Accepted Answer

Simple interest can be calculated using the formula $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount ($6,500), $r$ is the annual interest rate (4% or 0.04), and $t$ is the time in years (3). Calculating the interest: $I = 6500 \times 0.04 \times 3 = 780$. The total amount after 3 years is the principal plus interest: $6500 + 780 = 7280$.

You Plan to Invest $6,500 for Three Years at 4