Question

Nancy borrowed $24000 from the State Bank to buy a scooter. If the rate of interest be 12% per annum, what payment will she have to make after 6 years

Answer 1

the future value is $47,371.74

Explanation:

Given that

The borrowed amount is $24,000

The rate of interest is 12% per annum

The time period is of 6 years

We need to find out the payment made i.e. future value

So as we know that

Future value = Present value × (1 + rate of interest)^no of years

= $24,000 × (1 + 0.12)^6

= $24,000 × 1.12^6

= $47,371.74

Hence, the future value is $47,371.74