The principal P is borrowed at a simple interest rater for a period of time t. Find the loan's future value A, or the total amount due at time t. P = $2000, r=8.5%, t = 6 months ... The loan's future value is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
The principal P is borrowed at a simple interest rater for a period of time t. Find the loan's future value A, or the total amount due at time t. P = $2000, r=8.5%, t = 6 months ... The loan's future value is $ (Do not round until the final answer. Then 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
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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 \( t \).
\[ P = \$2000, \ r = 8.5\%, \ t = 6 \ \text{months} \]
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The loan's future value is \( \$ \ \_\_\_\_\_\_\_\_\_\_ \)
*(Do not round until the final answer. Then round to the nearest cent as needed.)*
**Explanation:**
To find the future value \( A \) using simple interest, use the formula:
\[ A = P(1 + rt) \]
- \( P \) is the principal amount (\$2000).
- \( r \) is the annual interest rate (8.5% or 0.085 as a decimal).
- \( t \) is the time in years (6 months or 0.5 years).
Plug these values into the formula to calculate the future value.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6030cbbc-dba6-4cc4-b2c7-5d66af95ec0b%2Fcdd1dd11-c346-42ab-a9cf-4faccf241744%2Fgmye4i_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 \( t \).
\[ P = \$2000, \ r = 8.5\%, \ t = 6 \ \text{months} \]
---
The loan's future value is \( \$ \ \_\_\_\_\_\_\_\_\_\_ \)
*(Do not round until the final answer. Then round to the nearest cent as needed.)*
**Explanation:**
To find the future value \( A \) using simple interest, use the formula:
\[ A = P(1 + rt) \]
- \( P \) is the principal amount (\$2000).
- \( r \) is the annual interest rate (8.5% or 0.085 as a decimal).
- \( t \) is the time in years (6 months or 0.5 years).
Plug these values into the formula to calculate the future value.
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