Question

18. For the simple interest loan whose terms are given below, find the future value, or the amount due at the end of the specified time.Principal:$6900Interest rate:3.6%Time:1 yearsFuture value: $

Answer 1

To determine the interest we need to pay, we need to use the following expression:

$A=P(1+rt)$

Where A is the final amount, P is the principal, r is the interest rate and t is the elapsed time.

$\begin{gathered} A=6900(1+\frac{3.6}{100}\cdot1)_{} \\ A=6900(1+0.036)_{} \\ A=6900(1.036) \\ A=7148.4 \end{gathered}$

The due amount is 7148.4