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Integration: Calculating areas

# What is the future value of $10,000 on deposit for 5 years at 6% simple interest?

Simple interest is the amount of interest charged on a sum for a given period of time and at a given rate.

## Answer: The future value of $10,000 with 6 % interest after 5 years at simple interest will be $ 13,000.

Let us calculate the simple interest of a loan.

**Explanation:**

Simple interest can be calculated using the formula S.I. = ( P × R × T)

Here, P = Principal amount of loan, R = rate of interest % per annum in % and T = Time (in years)

As per the question,

P = $10,000 , R = 6 % or 0.06, T = 5

⇒ S.I. = 10,000 × 6 % × 5

⇒ S.I. = 10,000 × (6 / 100) × 5

⇒ S.I. = $ 3,000

Simple interest can be calculated using the Cuemath's Simple Interest Calculator.

The future value will be the sum of principal value and simple interest.

⇒ FV = P + S.I.

⇒ FV = $ 10,000 + $ 3,000

⇒ FV = $ 13,000