The future value formula of simple interest is A=p (1+rt) A future value? P present value 2000 R interest rate 0.12 T time 60/360 for the first period A=2,000×(1+0.12×(60÷360)) A=2,040
For the second period which is 90/360 the present value of it after the payment of 1000 is 1040 (2040-1000) Now use the formula again A=1,040×(1+0.12×(90÷360)) A=1,071.2....answer
