SOLUTION: 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​ = $38,000​, r​

Algebra ->  Equations -> SOLUTION: 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​ = $38,000​, r​       Log On


   

Question 1176667: 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​ = $38,000​, r​ = 7.0​%, t​ = 3 years
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$__ (Round to the nearest cent as​ needed.)
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!
Equation:
A+=+P%281+%2B+rt%29
Calculation:
First, converting R=+7% percent to r a decimal
r+=+R%2F100+=+7%2F100+=+0.07 per year.
Solving our equation:
A+=+38000.00%281+%2B+%280.07+%2A+3%29%29+
A+=+38000.00%281+%2B+0.21%29+
A+=+38000.00%281.21%29+
A+=+45980.00
or this way:
A=P%2BI
P=38000
I=P%2Ar%2At=38000.00%2A0.07%2A3=7980.00
A=38000%2B7980=45980.00