Answer:
Future Value = Principal * (1 + Interest Rate)^Time
In this case, the principal is $21,779, the interest rate is 8.5% (or 0.085 as a decimal), and the time is 12 months.
To find the future value, we substitute these values into the formula:
Future Value = $21,779 * (1 + 0.085)^12
Calculating this using a calculator or spreadsheet, the future value of the loan is approximately $24,232.08.
So, the future value of the loan is $24,232.08. This means that after 12 months, the loan will grow to this amount with the given interest rate.