Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3 - Page 513: 40

Answer

The future value of a loan is the total amount of money that must be paid in order to pay off the loan. The future value of a loan is the sum of the present value of the loan and the interest.

Work Step by Step

The future value of a loan is the total amount of money that must be paid in order to pay off the loan. The future value of a loan is the sum of the present value of the loan and the interest. We can use this formula to calculate the future value $A$ of a loan. $A = P + I$ $A = P + Prt$ $A = P~(1+rt)$
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