Final answer:
To determine the total value of a $5,000 investment earning 3% interest for 15 years, you can use the formula for simple interest.
Step-by-step explanation:
To determine the total value of a $5,000 investment earning 3% interest for 15 years, we can use the formula for simple interest. The formula is:
Simple Interest = Principal × Interest Rate × Time
In this case, the principal is $5,000, the interest rate is 3% (or 0.03), and the time is 15 years. Plugging these values into the formula:
Simple Interest = $5,000 × 0.03 × 15 = $2,250.
To calculate the total future amount, we add the simple interest to the principal:
Total Future Amount = Principal + Simple Interest = $5,000 + $2,250 = $7,250.