Suggested languages for you:

Americas

Europe

Problem 1

# Compute the simple interest for the specified period and the future value at the end of the period. Round all answers to the nearest cent. $$\ 2,000 \text { is invested for } 1 \text { year at } 6 \% \text { per year }$$

Expert verified
The simple interest is $$120 and the future value at the end of the period is$$2,120.
See the step by step solution

## Step 3: Calculate future value.

The formula for future value is given by: Future Value = $$P + \text{Simple Interest}$$ In this case, we have P = $$2,000 and Simple Interest =$$120. Plugging these values into the formula: Future Value = $$\(2,000) +$$120 = \$2,120.

## Step 4: Round the answers to the nearest cent.

Since our answers are already in the nearest cent, we don't need to round them. The Simple Interest is $$120 and the Future Value is$$2,120.

We value your feedback to improve our textbook solutions.

## Access millions of textbook solutions in one place

• Access over 3 million high quality textbook solutions
• Access our popular flashcard, quiz, mock-exam and notes features

## Join over 22 million students in learning with our Vaia App

The first learning app that truly has everything you need to ace your exams in one place.

• Flashcards & Quizzes
• AI Study Assistant
• Smart Note-Taking
• Mock-Exams
• Study Planner