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 due at time t. Round your answer to the nearest cent.

P = $5,000, r = 5.25%, t = half a year

Question

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 due at time t. Round your answer to the nearest cent.

P = $5,000, r = 5.25%, t = half a year

anonymous · Answer

I know that we will have to use this formula A=P(1+rt)

anonymous · Answer

5000 ( 1 + 5,25 * 1/2) But I'm not sure

anonymous · Answer

@dg123  can you help me please?

anonymous · Answer

sorry no idea, business maths i never studied but ya i can surely make a try now

anonymous · Answer

It's okey thank you anyways =)

anonymous · Answer

well yeh ur formula is right but convert 5.25% into fraction that is 5.25/100,, 
so instead of 5.25, take 5.25/100 , nd u will get it

anonymous · Answer

THis is simple Interest.
A = Prt
A = 5000(0.0525)(0.5)
Then add this to 5000 to get the total value.

anonymous · Answer

it will be   5000(0.0525)(1/2) ?

anonymous · Answer

Yep. Then add that to 5000 to get the total amount. What you have right now is just the interest without the original amount.

anonymous · Answer

5131.25  that will be the answer ?

anonymous · Answer

ooh great, meas i ws also correct ty @Calcmathlete

anonymous · Answer

Thank you @dg an Calcmathlete  You guys saved my life :(

anonymous · Answer

anytime:)

anonymous · Answer

np