Find the future value (in dollars) of an 18-month investment of $3,500 into a simple interest rate account that has an annual simple interest rate of 5.5%.

the future value is $3788.75

Step-by-step explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

Where

P represents the principal or the initial amount invested.

R represents interest rate

T represents the duration of the investment in years

I represents the interest after T years.

From the information given,

P = $3500

T = 18 months = 18/12 = 1.5 years

R = 5.5%

Therefore,

I = (3500 × 5.5 × 1.5)/100

I = 28875/100 = 288.75

The future value of the investment would be

3500 + 288.75 = $3788.75

37

step-by-step explanation: