Question

The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. Round answer to the nearest cent. P = $11,000.00, r = 9%, t = 150 days

Answer 1

well, if take a year to be 365 days so hmmm 150 days is really just 150/365 of a year, so let's use that.

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$11000\\ r=rate\to 9\%\to (9)/(100)\dotfill &0.09\\ t=years\to (150)/(365)\dotfill &(30)/(73) \end{cases} \\\\\\ A=11000[1+(0.09)((30)/(73))]\implies A=11000\left( (757)/(730) \right)\implies A\approx 11406.85`