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
