Question

Find the future value of the loan. $34300 loan at 3.5% for 4 months

Answer 1

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 = $\frac{1}{3}$ year

Let The amount after 4 months = $ A

From compounded method

Amount = Principal × $(1+\dfrac{\textrm Rate}{100})^{Time}$

or, Amount = 34300 × $(1+\dfrac{\textrm 3.5}{100})^{\frac{1}{3}}$

or, Amount = 34300 × $(1.035)^{\frac{1}{3}}$

or, Amount = 34300 × 1.01152

∴ Amount = $ 34,695.136

Hence The future value of loan amount after 4 months is $ 34,695.136  Answer