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The principal P is borrowed at a simple interest rater for a period of time t. Find the loan's future value A, or the total amount due at timet. Round answers to the
nearest cent.
P - $7000, r = 7%, t = 6 years

Respuesta :

bperu2014
Simple interest formula:
I=PRT

I(interest money created in dollars)
P(initial amount of money)
R(interest rate as a decimal)
T(time in years)

I=7000(.07)(6)
I=$2,940

Therefore, the future value of A is $2,940

The loan's future amount is $9940

What is simple interest?

  • Simple interest is based on the principal amount of a loan or the first deposit in a savings account.

The formula to calculate Simple interest is :

I=PRT

where,

I(interest money created)

P(initial amount of money)

R(interest rate as a decimal)

T(time in years)

How to find the loan's future value?

  • Loan's future value will be principle amount + the net interest.

I=7000(.07)(6)

I=$2,940

So, the loan's future amount = $7000 + $2940 = $9940

Find more about "Simple interest" : https://brainly.com/question/25793394

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