Asked by Janice

I want to buy a car with cash in 4 years. I have $10,000.00 that I can invest today. I can get a bond earning 4%. How much will I have for the purchase?

This is what I am thinking for an answer but not quite sure:
N=4 years
I=4%
PV=10,000
for a total of 11698.59

Am I on the right path or is this not the formula I use?
Answered by Ms. Sue
I = PRT is the formula for simple interest. I get $11,600 figuring simple interest.

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