Answer
$INT=\$120$
$FV=\$2,120$
Work Step by Step
The simple interest on an investment (or loan) of $PV$ dollars at an annual interest rate of $r$ for a period of $t$ years is
$INT=PVrt$.
We are given: PV=2,000, t=1 (year), r=0.06 (6%).
Substitute into the formula:
INT=2000(1)(0.06)=120 (dollars)
The future value of an investment of $PV$ dollars at an annual simple interest rate of $r$ for a period of $t$ years is $FV=PV(1+rt)=PV+INT$ .
Here, $FV=2,000+120=\$2,120$
