The period must be expressed for the same time span as the rate. Begin aligned 3240 18000 times 006 times 3 end. Nowthe calculation of future value A can be done as follows.
Simple interest is calculated only on the original sum of money which is known as the principal.
A 5000 1331. Principal x rate x time interest For example say you invest 100 the principal at a 5 annual rate for one year. By inputting these variables into the formula 1000 times 10 times 3 years would be 300. 0 6 3.