The formula for the future amount F of an investment P at a simple interest r is;

$$F = P(1 + rt)$$

where t is the time in year. If you plot this expression into a graph of F versus t, you will get a straight line with (0, P) as an F-intercept. The portion of a graph that has a meaning is when t ≥ 0.

In your problem, just replace P by $1 and r by 0.04.

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.