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Find the future value of a $6500 investment for 275 days at 4.24% simple annual interest.

a. $6700
b. $6600
c. $6800
d. $6900

User Woggles
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1 Answer

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Final answer:

To find the future value of an investment, use the formula: Future Value = Principal + (Principal × Interest Rate × Time). Plugging in the given values, we find that the future value is $6600.

Step-by-step explanation:

To find the future value of an investment, we can use the formula:

Future Value = Principal + (Principal × Interest Rate × Time)

Given that the principal is $6500, the interest rate is 4.24%, and the time is 275 days, we can plug in these values:

Future Value = $6500 + ($6500 × 0.0424 × 275/365)

Calculating this, we get:

Future Value = $6500 + ($6500 × 0.032 × 275/365) = $6600

Therefore, the future value of the $6500 investment at 4.24% simple annual interest for 275 days is $6600.

User Dcheng
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