Answer
The amount of simple interest is\[\$72\]and the future value of the loan is\[\$2,472\].
Work Step by Step
Calculation of the simple interest can be done by multiplying the principal amount with the rate of interest and respective duration of time for which amount was taken as loan.
Compute the simple interest as mentioned below-
\[\begin{align}
& \text{Simple interest}=\$2,400\times0.12\times0.25\\&=\$72\end{align}\]
Future value of the loan is the total of the Principal amount and the Simple interest.
Compute the future value of the loan as mentioned below-
\[\begin{align}
& \text{Future value of loan}=\$2,400+\$72\\&=\$2,472\end{align}\]
Hence, the amount of simple interest is\[\$72\]and the future value of the loan is\[\$2,472\].
