Thinking Mathematically (6th Edition)

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

Chapter 8 - Personal Finance - Chapter Summary, Review, and Test - Review Exercises - Page 570: 32

Answer

\[\$12,738\]

Work Step by Step

Calculation of future value of loan can be done with the mentioned formula: \[A=P\left( 1+rt \right)\] Where A denotes the Future value of the amount, P denotes the Principal amount, r denotes the rate of interest, and t denotes the number of years. By using formula \[\begin{align} & \text{Future value of the amount}=P\times \left( 1+\left( rt \right) \right) \\ & =\$12,000\times\left(1+\left(0.082\times0.75\right)\right)\\&=\$12,000\times1.0615\\&=\$12,738\end{align}\] Hence, the future value of the amount is\[\$12,738\]
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