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## The formula for the future

The formula for the future amount

Fof an investmentPat a simple interestris;$$F = P(1 + rt)$$

where

tis the time in year. If you plot this expression into a graph ofFversust, you will get a straight line with (0,P) as anF-intercept. The portion of a graph that has a meaning is whent≥ 0.In your problem, just replace

Pby $1 andrby 0.04.