given a principal of 18 a rate of 10 and a simple of 360 fin

given a principal of $18 a rate of 10% and a simple of $360 find the future value

Solution

Given that

Principal p = $360

Interest rate r = 10%

Simple interest I = $18

We know that

I = p t r / 100

t = ( I x 100 ) / p r

t = ( $18 x 100 ) / ( $360 x 10 )

t = 1/2 year

We know that

Future value is    A = p ( 1 + rt )

= 360 ( 1 + 10 x 1/2 )

= 360 ( 1 + 5 )

= 360 x 6

A = $2160

Therefore,

Future value = $2160