Answer:
Step-by-step explanation:
the formula for simple interest is:
i = p * r * n
f = p + i
combine the two formulas together and you get f = p + p * r * n.
factor out the p to get f = p * (1 + r * n).
i is the interest
p is the present value or principal
r is the interest rate per time period
n is the number of time periods.
f is the future value
in your problem:
p equals 6000
r = .07 per year
n = 10 years.
the formula becomes 6000 * (1 + .07 * 10) = 6000 * 1.7 = 10200.
if you calculated it separately from i = p * r * n and then f = p * i, you would get the same result.
i = p * r * n becomes i = 6000 * .07 * 10 which becomes 4200.
f = p + i becomes f = 6000 + 4200 which becomes 10200
