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%.

Answer: the future value is $3788.75

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount invested.

P represents the principal or amount invested.

R represents interest rate

T represents the duration of the investment in years.

From the information given,

P = 3500

R = 5.5

T = 18 months = 18/12 = 1.5 years

I = (3500 * 5.5 * 1.5) / 100 = 28875/100

I = 288.75

the future value would be

3500 + 288.75 = $3788.75