Question

Find the simple interest and the future value for principal amount $110, rate 6%, and time 2 years, The simple interest is $ The future value is $

Answer 1

p = $110

r = 6% = 6/100

t = 2 years

`SI=(prt)/(100)=(110*6*2)/(100)=(1320)/(100)=\text{ \$}13.2`

simple interest = $13.2

The future value will be

`\begin{gathered} FV=110(1+0.06)^2 \\ FV=110(1.06)^2 \\ FV=110*1.1236 \\ FV=123.596=\text{ \$123.596} \end{gathered}`