Answer
$INT=\$ 250$
$FV=\$ 10,250$
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=$10,000$,
t=$ \frac{5}{6}$ ( $10$ months = $ \frac{10}{12}=\frac{5}{6} $year),
r=$0.03$ ($3$%).
Substitute into the formula:
$INT=10000(0.03)( \frac{5}{6})=250$ (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, $FV=10,000+250=\$ 10,250$
