A computational procedure is developed to solve the problems of coupled motion of a rigid body and a viscous incompressible fluid; the former is mounted on elastic springs, and the latter is surrounding the rigid body. The arbitrary Lagrangian-Eulerian method is employed to incorporate the interface conditions between the body and the fluid. The streamline upwind/Petrov-Galerkin finite element method is used for the spatial discretization of the fluid domain, and the predictor-corrector method is used for the time integration. The method is applied to evaluate the added mass and the added damping of a circular cylinder as well as to simulate the vibration of a circular cylinder induced by vortex sheddings.