Answer: the future value is $3788.75
Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
Where
P represents the principal or the initial amount invested.
R represents interest rate
T represents the duration of the investment in years
I represents the interest after T years.
From the information given,
P = $3500
T = 18 months = 18/12 = 1.5 years
R = 5.5%
Therefore,
I = (3500 × 5.5 × 1.5)/100
I = 28875/100 = 288.75
The future value of the investment would be
3500 + 288.75 = $3788.75
