If the principal P = $900, the rate r = 7 1/2 %, and time t = 1 year, find the following. What is the amount of interest?

What is the future value?
Ok found I think I found the interest
900x0.075=67.50 is this correct.Now I need help in finding the future value.

Yes, r=.075 x $900 = interest is $67.50

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r=.075 P=900

1 yr P+rP
or P(1+r) or 900(1+.075) = $967.50

2 yr (P+rP) + r(P+rP)
or P(1+r)^2 or 900(1+.075)^2 = $1040.06 in 2 years

So for future years the formula would be P(1+r)^x where x=number of years

Thanks Lee

Yes, you are correct in calculating the interest. To find the amount of interest, you multiply the principal amount (P) by the rate (r) expressed as a decimal. In this case, $900 multiplied by 0.075 equals $67.50.

To calculate the future value, you can use the following formula:

Future Value (FV) = Principal (P) + Interest (I)

Where:
Principal (P) = $900
Interest (I) = $67.50 (as calculated before)

Plugging in the values, the future value would be:

FV = $900 + $67.50 = $967.50

Therefore, the future value after one year would be $967.50.