Upon amassing a fortune as a rock star, your uncle Zephaniah gives you $1 000 000. You decide to invest the whole lot into Canada Savings bonds (CSB's). The CSB's pay simple interest at a rate of 3.78% per year, and mature after fifteen years (that is, you have to cash them out after fifteen years).
P(1+rt)
P = Po + Po*r*t = 1,000,000 + 1,000,000*0.0378*15 =
To calculate the amount you will have after fifteen years by investing $1,000,000 in Canada Savings Bonds (CSBs) with a simple interest rate of 3.78% per year, you can use the formula for simple interest:
A = P(1 + rt)
where:
A = the final amount after investing
P = the initial principal amount (in this case, $1,000,000)
r = the interest rate per period (in this case, 3.78% or 0.0378)
t = the number of periods (in this case, 15 years)
Now, let's plug in the values into the formula and calculate the amount after fifteen years:
A = $1,000,000(1 + 0.0378 * 15)
A = $1,000,000(1 + 0.567)
A = $1,000,000 * 1.567
A = $1,567,000
Therefore, after fifteen years of investing $1,000,000 in CSBs with a simple interest rate of 3.78% per year, you would have $1,567,000.