The principal P is borrowed at a 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. P = $15,000, r = 5.0%, t = 4 years (Round to the nearest cent as needed.)
The principal P is borrowed at a 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. P = $15,000, r = 5.0%, t = 4 years (Round to the nearest cent as needed.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![The principal \( P \) is borrowed at a simple interest rate \( r \) for a period of time \( t \). Find the loan's future value \( A \), or the total amount due at time \( t \).
Given:
- \( P = \$15,000 \)
- \( r = 5.0\% \)
- \( t = 4 \) years
\[ A = P(1 + rt) \]
\[ A = 15,000(1 + 0.05 \times 4) \]
\[ A = 15,000(1 + 0.20) \]
\[ A = 15,000 \times 1.20 \]
\[ A = 18,000 \]
$18,000 (Round to the nearest cent as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58402a47-f1ff-47ea-9009-84135bb68162%2Fd42d0466-8fcd-425f-8e68-c311d6e907f2%2Ffbvybc6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The principal \( P \) is borrowed at a simple interest rate \( r \) for a period of time \( t \). Find the loan's future value \( A \), or the total amount due at time \( t \).
Given:
- \( P = \$15,000 \)
- \( r = 5.0\% \)
- \( t = 4 \) years
\[ A = P(1 + rt) \]
\[ A = 15,000(1 + 0.05 \times 4) \]
\[ A = 15,000(1 + 0.20) \]
\[ A = 15,000 \times 1.20 \]
\[ A = 18,000 \]
$18,000 (Round to the nearest cent as needed.)
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