Question

Find the future value of this loan.$23,820 at 6.5% for 17 monthsThe future value of the loan is $.(Round to the nearest cent as needed.)P

Answer 1

we have the formula

$FV=PV\left(1+rt\right)$

where

PV=$23,820

r=6.5%=6.5/100=0.065

n=17 months=17/12 years

substitute in the formula

$\begin{gathered} FV=23,820(1+0.065(\frac{17}{12})) \\ FV=\ 26,013.43 \end{gathered}$