Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Experience the convenience of getting accurate answers to your questions from a dedicated community of professionals. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Lynne needs to borrow $7250 for cosmetic surgery. she obtains a loan from her grandmother for 54 months at a simple interest rate of 5.1% what is the loans future value?

Sagot :

Answer:

Future Value = $8174.375

Explanations:

The amount borrowed by Lynne is the principal

Let the principal be represented by P

P = $7250

Let the simple Interest Rate be represented by r

r = 5.1% = 5.1 / 100

r = 0.051

Let the time( in years) be represented by t

t = 54 months

12 months = 1 year

54 months = 2 ½ years = 2.5 years

t = 2.5 years

The future value, FV, of a principal , p, at a simple interest, r, for a period of time, t, is given by the formula:

FV = p ( 1 + rt)

FV = 7250 ( 1 + 0.051(2.5) )

FV = 7250 ( 1 + 0.1275)

FV = 7250 ( 1.1275)

FV = $8174.375

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.