Simple Interest Investment Formula: Predicting Value Over Time

Math Problem Statement

You receive a $550 gift for graduating. You decide to invest the money at 4% per year, simple interest. [1K/1A]

a) Write an equation that predicts the value of your investment over time.

b) Use your equation to predict the value of your investment after 7 years.

For simple interest, the formula used to calculate the value of an investment over time is:

$A = P(1 + rt)$

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Simple Interest
Algebra

A = P(1 + rt)

Simple Interest Theorem

Grades 7-9

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