Question

What is the present value of 6000 received 14 years from today when the interest rate is 10%

Answer 1

Answer:

$14400

Step-by-step explanation:

Given data

Principal= 6000

Time= 14 years

Rate= 10%

Let us use the simple interest expression to find the final amount

A=P(1+rt)

substitute

A=6000(1+0.1*14)

A=6000(1+1.4)

A=6000*2.4

A=$14400

Hence based on a simple interest model the final amount is $14400