whats the future value of $1,950 at 11.25% annual simple interest for 13 years?

To find the future value of $1,950 at 11.25% annual simple interest for 13 years, we use the formula:

\[
\text{Future Value (FV)} = \text{Principal (P)} + \text{Simple Interest (SI)}
\]

The simple interest ($SI$) is calculated as:

\[
\text{SI} = P \times R \times T
\]

Where:
- $P = 1950$ (Principal)
- $R = 0.1125$ (Rate, as a decimal)
- $T = 13$ years (Time)

First, calculate the simple interest:

\[
\text{SI} = 1950 \times 0.1125 \times 13 = 2853.75
\]

Then, calculate the future value:

\[
\text{FV} = 1950 + 2853.75 = 4803.75
\]

So, the future value after 13 years is **$4,803.75**.

Would you like more details or have any questions? Here are some related questions you might find interesting:

1. What is the difference between future value and present value in finance?
2. How would the future value change if the interest was compounded annually?
3. What are the implications of a higher interest rate on future value?
4. How does the length of the investment period affect the future value?
5. Can future value be calculated using continuous compounding?

**Tip:** In simple interest calculations, the future value grows linearly with time, unlike compound interest, where the growth is exponential.

Learn how to calculate the future value of $1,950 invested at 11.25% annual simple interest for 13 years. This problem involves using the simple interest formula and understanding how interest accrues over time. Suitable for students in Grades 9-12.

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