anonymous
  • anonymous
In order to start a small business a student takes out a simple interest loan for $7000 for 9 months with 12% interest. How much interest must the student pay (round to the nearest cent) and find the future value of the loan (round to the nearest cent)
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
@texaschic101
DanJS
  • DanJS
REmember the definition for the simple interest Simple Interest = Current Value x rate x time in years I = P*r*t just have to calculate the interest I
DanJS
  • DanJS
r = 0.12 P = 7000 t = 9/12

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texaschic101
  • texaschic101
but what about the future value ? Thats where I get lost
DanJS
  • DanJS
yeh , i guess they want that in terms of time maybe,
texaschic101
  • texaschic101
does this have anything to do with it...or am I way off... http://www.algebra.com/algebra/homework/Finance/PMTFV.lesson
anonymous
  • anonymous
I'm not sure
DanJS
  • DanJS
Future Value = Start Value + Accumulated interest
texaschic101
  • texaschic101
so basically do the I = PRT to find I, and when that is found, add it back to P ??
DanJS
  • DanJS
value of the loan at 9months is the future i assume, not t
DanJS
  • DanJS
FV = P + P*r*t FV = P(1+r*t)
texaschic101
  • texaschic101
oh....ok...I see now. FV = 7000 + 7000 * 0.12 * 9/12(or 3/4)
texaschic101
  • texaschic101
you get it smiley ?
anonymous
  • anonymous
kinda
texaschic101
  • texaschic101
FV = 7000 + 7000 * 0.12 * 3/4 FV = 7000 + 840 * 3/4 FV = 7000 + 630 FV = 7630 According to the formula that Dan gave us....I got this
anonymous
  • anonymous
oh alright what was the amount of interest

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