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You invest $3,000 for three years at 12 percent.

a. What is the value of your investment after one year? Multiply $3,000 * 1.12_____

User Alrob
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Final answer:

To find the value of an investment after one year at a 12 percent interest rate, multiply the principal amount of $3,000 by 1.12. The investment will be worth $3,360 after one year.

Step-by-step explanation:

To find the value of your investment after one year at a 12 percent annual interest rate, you would use the formula for simple interest A = P(1 + rt). The quantity A represents the total amount accrued after n years, encompassing both the principal amount, denoted as P (the initial sum of money), and the annual interest rate, expressed as a decimal, signified by r and t is the time in years. In this case, your initial investment is $3,000, the annual interest rate is 12% (or 0.12 as a decimal), and time t is one year.

The calculation would be:

$3,000 * 1.12 = $3,360

So, after one year, your investment would be worth $3,360.

User Zelimir
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