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The principal P is borrowed at a simple interest rate are for a period of time T. Find the loans future value A, or the total amount due at time T

The principal P is borrowed at a simple interest rate are for a period of time T. Find-example-1
User Marsden
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Answer:

The total amount due after five years is $57,000.

Explanation:

Recall that simple interest is given by the formula:


\displaystyle A=P(1+rt)

Where A is the final amount, P is the principal amount, r is the rate, and t is the time (in years).

Since we are investing a principal amount of $38,000 at a rate of 10.0% for five years, P = 38000, r = 0.1, and t = 5. Substitute:


\displaystyle A=38000(1+(0.1)(5))

Evaluate. Hence:


\displaystyle A=\$ 57,000

The total amount due after five years is $57,000.

User Daniloxxv
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