Question

Find the present value of $10,000 payable in five years at 6% simple interest.

Answer 1

We know, I = P * R * T /100
Here, P = 10,000
R = 6%
T = 5

Substitute their values into the expression,
I = 10000 * 6 * 5 /100
I = 300000 / 100
I = 300

Final Amount = Initial Amount + Interest Amount
Final Amount = 10,000 + 300 = 10,300

So, your final answer is $10,300

Hope this helps!