Home > Algebra > Future value > Future value using Simple Interest example

1. Future value using Simple Interest example ( Enter your problem )
  1. Find Future value (FV) Example
  2. Find Present value (C) Example
  3. Find Interest Rate (i) Example
  4. Find Time (n) Example

4. Find Time (n) Example





1. Find Time n = ?
Present value C = 1000, Interest Rate i = 10%, Future value FV = 1300,
for Future value using Simple Interest method


Solution:
`C=1000`

`i=10%=0.1` per year (Interest rate)

`FV=1300` (Future value)

Now, Future value (Simple Interest) formula is
`FV=C*(1+i*n)`

`:.1300=1000*(1+0.1*n)`

`:.(1300)/(1000)=1+0.1*n`

`:.1.3=1+0.1*n`

`:.1.3-1=0.1*n`

`:.0.3=0.1*n`

`:.0.3/0.1=n`

`:.n=3`
2. Find Time n = ?
Present value C = 5000, Interest Rate i = 10%, Future value FV = 6000,
for Future value using Simple Interest method


Solution:
`C=5000`

`i=10%=0.1` per year (Interest rate)

`FV=6000` (Future value)

Now, Future value (Simple Interest) formula is
`FV=C*(1+i*n)`

`:.6000=5000*(1+0.1*n)`

`:.(6000)/(5000)=1+0.1*n`

`:.1.2=1+0.1*n`

`:.1.2-1=0.1*n`

`:.0.2=0.1*n`

`:.0.2/0.1=n`

`:.n=2`




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