Question

You have a $13,500 loan with a 7% interest rate and a term of 4 years what is the future value of the loan if the loan isnt paid until the end of the 4 year term

Answer 1

Answer: $17695.80

Explanation:

Present value = $13500

Interest rate = 7%

Time = 4 years

Future value = PV(1+r)^n

where,

PV= present value

r = interest rate

n = number of years

= 13500(1+0.07)^4

= 13500(1.07)^4

= 13500 × 1.3108

= $17695.80