Question

Find the future value of the loan. $34300 loan at 3.5% for 4 months

Answer 1

The future value of loan amount after 4 months is $ 34,695.136

Explanation:

Given as :

The loan principal = $ 34300

The rate of interest applied = 3.5 %

The time period = 4 months =
`(1)/(3)` year

Let The amount after 4 months = $ A

From compounded method

Amount = Principal ×
`(1+(\textrm Rate)/(100))^(Time)`

or, Amount = 34300 ×
`(1+(\textrm 3.5)/(100))^{(1)/(3)}`

or, Amount = 34300 ×
`(1.035)^{(1)/(3)}`

or, Amount = 34300 × 1.01152

∴ Amount = $ 34,695.136

Hence The future value of loan amount after 4 months is $ 34,695.136 Answer