Answer:
The future value of loan amount after 4 months is $ 34,695.136
Step-by-step explanation:
Given as :
The loan principal = $ 34300
The rate of interest applied = 3.5 %
The time period = 4 months =
year
Let The amount after 4 months = $ A
<u>From compounded method</u>
Amount = Principal × ![(1+\dfrac{\textrm Rate}{100})^{Time}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%20Rate%7D%7B100%7D%29%5E%7BTime%7D)
or, Amount = 34300 × ![(1+\dfrac{\textrm 3.5}{100})^{\frac{1}{3}}](https://tex.z-dn.net/?f=%281%2B%5Cdfrac%7B%5Ctextrm%203.5%7D%7B100%7D%29%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
or, Amount = 34300 × ![(1.035)^{\frac{1}{3}}](https://tex.z-dn.net/?f=%281.035%29%5E%7B%5Cfrac%7B1%7D%7B3%7D%7D)
or, Amount = 34300 × 1.01152
∴ Amount = $ 34,695.136
Hence The future value of loan amount after 4 months is $ 34,695.136 Answer