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Find the future value of the loan. P = $13,200, r = 6.5%, t = 2 months

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Answer:

$14916

$19876.8

Explanation:

I don't know if it is dimple interest or compound so I will answer in both. (Mostly simple interests are used). Also in compound interest, we use n instead of t so I guess it is simple interest.

To find the simple interest, we have to use the formula Interest= (Prt)/100

Plug in the values:

I= (13200×6.5×2)/100 (assuming monthly interest)

I= $1716

This is not our final answer as we need the amount so we will add the interest with the amount.

Amount= 13200+1716= $14916

Now for compound interest, we have to use the formula:

Amount= P(1+(r/100))^n

Plug in the values:

A= 13200(1+(6.5/100))^6.5

A= $19876.8

User Vinh Nguyen
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