To find the future value of a principal amount with simple interest, we use the formula
[tex]\begin{gathered} A=P(1+rt) \\ \text{where} \\ A\text{ is the future value} \\ P\text{ is the principal amount} \\ r\text{ is the rate in decimal form} \\ t\text{ is time in years} \end{gathered}[/tex]The following are the given of the problem
Principal Amount - Php 20,0000.00
Rate - 3.75% when converted to decimal is 0.0375
Time - 6 years
Substitute the following given to solve for the future value
[tex]\begin{gathered} A=P(1+rt) \\ A=20000\big(1+(0.0375)(6)\big) \\ A=20000\big{(}1+0.225\big{)} \\ A=20000(1.225) \\ A=24500 \end{gathered}[/tex]Therefore, there will be Php 24,500 in the account after 6 years.
