Question

How much is the future value on this financial transaction, P=10,000.00,r=5%,and t=3 years?

Answer 1

A= $11500

Explanation:

Step one:

given data

P=10,000.00

r=5%,and

t=3 years

Required

The final amount A

Step two:

assuming a simple interest we have

A= P(1+rt)

substitute

A= 10000(1+0.05*3)

A= 10000(1+0.15)

A=10000(1.15)

A=$11500