Final answer:
To find the future value of a loan with a principal amount of $12,000, an interest rate of 8%, and a time period of 2 years, we can use the formula Future Value = P(1 + rt). Substituting the given values into the formula gives us a future value of approximately $13,920.
Step-by-step explanation:
To find the future value of a loan, we can use the formula:
Future Value = P(1 + rt)
Where P is the principal amount (loan amount), r is the interest rate, and t is the time period in years.
Given that P = $12,000, r = 8%, and t = 2 years, we can substitute these values into the formula to find the future value:
Future Value = $12,000(1 + 0.08 * 2) = $12,000 * 1.16 = $13,920
Therefore, the future value of the loan is approximately $13,920.