question 1\nyou invest $6,000 at 6% simple interest for 3 years.\nwhat is the total future…

question 1\nyou invest $6,000 at 6% simple interest for 3 years.\nwhat is the total future value?\n$7,200\n$7,080\n$7,000\n$6,900

question 1\nyou invest $6,000 at 6% simple interest for 3 years.\nwhat is the total future value?\n$7,200\n$7,080\n$7,000\n$6,900

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$6000$, $r = 0.06$ (since $6%=0.06$), and $t = 3$ years.

Step2: Calculate the interest

$I=Prt=6000\times0.06\times3 = 6000\times0.18=$1080$.

Step3: Calculate the total future value

The total future value $A$ is the sum of the principal $P$ and the interest $I$. So, $A=P + I=6000 + 1080=$7080$.

Answer:

$7,080$