Final answer:
To calculate the value of $1915 borrowed at 6.4% for 9 years, we use the simple interest formula I = PRT. The total interest is $1100.24, so the loan value after 9 years is $3015.24.
Step-by-step explanation:
To Find the value of $1915 borrowed at 6.4% for 9 years, we need to calculate the total amount due after the interest is applied over the 9 years. This can be found using the formula for simple interest:
I = PRT, where:
- I = Interest
- P = Principal amount (the initial amount of money)
- R = Annual interest rate (in decimal form)
- T = Time (in years)
First, we convert the annual interest rate from a percentage to a decimal by dividing by 100:
R = 6.4% = 0.064
Then we plug the values into the formula:
I = 1915 * 0.064 * 9
I = 1100.24
The total amount of interest accumulated over 9 years is $1100.24. To find the total value of the loan after 9 years, we add the interest to the principal amount:
Total Value = Principal + Interest
Total Value = 1915 + 1100.24
Total Value = $3015.24
Therefore, the value of $1915 borrowed at 6.4% for 9 years is $3015.24.