Suppose you buy a $1395 savings bond that pays 4.3% annual simple interest. Determine the value of the bond after 7 years.
P = Po + Po*r*t.
Po = $1395.
r = 4.3% / 100% = 0.043.
t = 7 years.
Plug the above values into the given Eq.
Answer: $1814.90.