Question

Sam put 3000 into saving it earned 6% simple interest annually after 6 years how much will Sam have

Answer 1

the future value is 4,080

Explanation:

The computation of the future value under the simple interest is shown below:

As we know that

Future value = Present value × (1 + rate of interest × time period)

= 3,000 × (1 + 6 × 6%)

= 3,000 × (1 + 0.36)

= 3,000 × 1.36

= 4,080

Hence, the future value is 4,080