Question

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

Answer 1

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