Question

Find the future value of this loan.

$8079 at 9.1% for 7 months
(round to the nearest cent if needed)

Answer 1

the full value is $8507.86

Explanation:

Use I=prt(interest rate formula)

p=principal(8079)

r=rate of interest(0.091) -Always convert % into decimal when dealing with interest

t= time (7/12 or 0.583)- if time is in months form you need to put a denominator of 12

now use the formula

I=8079*0.091*0.583

I=428.86

now you need to add the interest to the principal to get full value

428.86+8079=$8507.86