Question

The principal P is borrowed at 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. Round answer to the nearest cent. P = $160, r = 7%, t = 3 years

Answer 1

Answer:

  $193.60

Step-by-step explanation:

The applicable formula is ...

  A = P(1 +rt)

Filling in the given numbers and doing the arithmetic, we find ...

  A = 160(1 + .07·3) = 160·1.21 = 193.60

The amount due is $193.60.