Question

A $200 investment earns 8% annual simple interest for 3 years? How much is it worth in 3 years?

Answer 1

i think you multiply them all.

Answer 2

?

Answer 3

multiply 200 8% and 3

Answer 4

by what?

Answer 5

i just do 200*.08*3?

Answer 6

8% of 200 * 3..

so (0.08 * 200) * 3 = 48 $...

Answer 7

Not quite. The formula is \[F=P+(P \times R \times n)\]
Where F is future value, P is present value, R is the rate, and n is the number of periods. Does that help?

Answer 8

No i'm more confused. Can u just tell me how to write it then i'll solve it?

Answer 9

You're trying to find F, the future value. You know that the present value, P, is $200, the interest rate, R, is 8% and because it is an annual rate (every year), and it is over 3 years, n equals 3. Now, just plug those into the formula.