What is the future value of $10,000 on deposit for 2 years at 6% simple interest?

Solution:

Given, principal P = $10,000

n = 2 years

r = 6%

We have to find the future value with simple interest.

Simple interest, SI = Pnr/100

So, SI = (10,000)(2)(6)/100

= 100(12)

= $1200

Future value = SI + P

So, future value = 1200 + 10000

Future value = $11200

Therefore, future value is $11200.

What is the future value of $10,000 on deposit for 2 years at 6% simple interest?

Summary:

The future value of $10,000 on deposit for 2 years at 6% simple interest is $11200.