Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Bolden Co., a company that you regularly do business with, gives you a $10,000 note. The note is due in three years and pays simple interest of 8% annually. How much will Bolden pay you at the end of that term? Note: Enter the interest rate as a decimal. (i.e. 15% would be entered as .15) Principal + ( Principal X Rate Time Total + X years Feedback Check My Work Remember, the interest is only computed on the principal amount