If the principal P = $700, the rate r = 6 1
2 %, and time t = 1 year, find the following.
(a) What is the amount of interest?
$
(b) What is the future value?
I = PRT
I = 700 * 0.65 * 1
I = 45.50
45.50 + 700 = ?
if the p= $500, the rate r=6 1/2 %and time t=1year
what is the amount of interest?
what is the future value?
To find the amount of interest and the future value, we can use the formula for simple interest:
Simple Interest = Principal * Rate * Time
(a) Amount of Interest:
Given:
Principal (P) = $700
Rate (r) = 6.5%
Time (t) = 1 year
Substituting these values into the formula, we get:
Interest = $700 * 6.5% * 1 year = $45.50
Therefore, the amount of interest is $45.50.
(b) Future Value:
The future value is the total amount after the principal and interest are added together. It can be calculated using the formula:
Future Value = Principal + Interest
Given:
Principal (P) = $700
Interest = $45.50 (as calculated in part a)
Substituting these values into the formula, we get:
Future Value = $700 + $45.50 = $745.50
Therefore, the future value is $745.50.