The Future Value of Simple Interest is the projected total amount that a principal sum will accumulate over a certain time period, given a predetermined rate of interest. This is calculated using the following formula: Future Value = Principal * (1 + (Interest Rate * Time)). This fundamental financial principle is often used in computations relating to savings and investments.
| Topic | Problem | Solution |
|---|---|---|
| None | How much interest is included in the future value… | Given that the annuity payment (P) is $1600, the annual interest rate (r) is 7% or 0.07 in decimal … |