Question

The principal P is borrowed at a 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.
P = ​$1000​, r = 3.5​%, t = 3 months

Answer 1

The​ loan's future value​ A, or the total amount due at time t is $1105.

Given, P = ​$1000​, r = 3.5​%, t = 3 months.

We need to find the loan's future value A.

What is Simple interest?

Simple interest is computed on the principal amount of a loan or the first deposit in a savings account. Simple interest does not compound, therefore an account holder will only get interest on the principal, and a borrower will never have to pay interest on previously collected interest.

We know that, $Simple Interest=\frac{P\times\ T \times\ R }{100}$

Now, $Simple Interest=\frac{1000\times3\times3.5}{100\times12}$

$=\frac{10,500}{100} =105$

As we know, $Amount=Principal+Simple Interest$

$=1000+105=1105$

Hence, the​ loan's future value​ A, or the total amount due at time t is $1105.

To know more about simple interests visit:

brainly.com/question/25663053?referrer=searchResults

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