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?

In this problem, you are looking for the future value of your investment at the end of three years. Here are the given in the problem:

Principal (P) = $6,500

Rate (r) = 4%

Time (t) = 3 years

We shall be using this formula to compute the problem where A is the future value of the investment.

A = P (1 + rt)

Substituting the amount to the formula:

A = $6,500 [1 + (4% x 3) ]

A = $7,280