Answer
The loan's future value is $\$3420$
Work Step by Step
This is the formula we use when we make calculations with simple interest:
$A = P~(1+rt)$
$A$ is the future value
$P$ is the principal
$r$ is the interest rate
$t$ is the number of years
We can find the value of the loan with an interest rate of 7% for 2 years.
$A = P~(1+rt)$
$A = (\$3000)~[1+(0.07)(2)]$
$A = \$3420$
The loan's future value is $\$3420$
