Final answer:
To find the total future amount with simple interest, we use the formula A = p(1 + it). For a principal of $24,000 at a rate of 18% over 3.5 years, the future amount A is $39,120.
Step-by-step explanation:
To calculate the total future amount A, with simple interest when the principal amount (p) is $24,000, the interest rate (r) is 18%, and the time (t) is 3.5 years, we can use the simple interest formula: A = p(1 + it). First, we convert the interest rate from a percentage to a decimal by dividing by 100. In this case, 18% becomes 0.18. The formula now becomes A = $24,000(1 + 0.18 × 3.5).
The interest portion is calculated as interest = principal × rate × time, which in this case is $24,000 × 0.18 × 3.5. The interest earned over 3.5 years would be $24,000 × 0.18 × 3.5 = $15,120.
To find the total amount A, we simply add the original principal to the interest earned: A = $24,000 + $15,120 = $39,120.