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+(3.6)/(100)\cdot1)_{} \\ A=6900(1+0.036)_{} \\ A=6900(1.036) \\ A=7148.4 \end{gathered}`

The due amount is 7148.4