Question

An amount of $42,000 is borrowed for 6 years at 9% interest, compounded annually. If the loan is paid in full at the the end of hat period how much must be paid back?

Answer 1

70,438.20

Explanation:

To calculate the future value you use the following formula

FV=PV(1+i)^n

Plug in our numbers and get

FV=42000(1+.09)^6

42000*1.09^6=70,438.20