Answer:
To find the future value of a loan, we can use the future value formula with simple annual interest. According to the web search results¹, the formula is:
FV = PV * (1 + i * n)
where:
- FV is the future value
- PV is the present value
- i is the interest rate per period
- n is the number of periods
In this case, the present value is $15,034, the interest rate per month is 11.4% / 12 = 0.95%, and the number of months is 13. Plugging these values into the formula, we get:
FV = 15,034 * (1 + 0.0095 * 13)
FV = 15,034 * 1.1235
FV = **16,890.39**
Therefore, the future value of this loan is **$16,890.39**. This means that after 13 months, the borrower will have to pay back $16,890.39 to the lender.