Simple interest formula:
I is the interest
P is the principal amount
r is the interest rate in decimals
t is the time in years
Future value formula (A):
___________
For the given situation:
1. Turn the time into years:
Bankers' Rule: 1 year is 360days
2. Write the interest rate in decimal form:
What is the interest on the loan?:
The interest of the loan is $0.68
What is the loan's future value?
You can use the formula above or just add he interest to the principal amount:
The loan's future value is $325.68