Question 1093073
the formula for simple interest is:


i = p * r * n


f = p + i


combine the two formulas together and you get f = p + p * r * n.


factor out the p to get f = p * (1 + r * n).


i is the interest
p is the present value or principal
r is the interest rate per time period
n is the number of time periods.
f is the future value


in your problem:


p equals 6000
r = .07 per year
n = 10 years.


the formula becomes 6000 * (1 + .07 * 10) = 6000 * 1.7 = 10200.


if you calculated it separately from i = p * r * n and then f = p * i, you would get the same result.


i = p * r * n becomes i = 6000 * .07 * 10 which becomes 4200.


f = p + i becomes f = 6000 + 4200 which becomes 10200.