A. COMPUTING FOR THE FUTURE VALUE (7)
Example 1: If Randy borrowed P200,000 from a commercial bank charging
12% simple interest, how much would he pay at the end of 5 years?
Solution: Given:
Principal (P) = P200,000
Rate of Interest (O) = 12% = 0.12
Time (t) = 5 years
F=P (1+rt)
F = P200,000 (1+ (0.12) (5yrs)]
F = P320,000
Randy will be paving a total amount of P320,000 at the end of 5​