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anonymous
 one year ago
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)
anonymous
 one year ago
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)

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DanJS
 one year ago
Best ResponseYou've already chosen the best response.0REmember 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
 one year ago
Best ResponseYou've already chosen the best response.0r = 0.12 P = 7000 t = 9/12

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0but what about the future value ? Thats where I get lost

DanJS
 one year ago
Best ResponseYou've already chosen the best response.0yeh , i guess they want that in terms of time maybe,

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0does this have anything to do with it...or am I way off... http://www.algebra.com/algebra/homework/Finance/PMTFV.lesson

DanJS
 one year ago
Best ResponseYou've already chosen the best response.0Future Value = Start Value + Accumulated interest

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0so basically do the I = PRT to find I, and when that is found, add it back to P ??

DanJS
 one year ago
Best ResponseYou've already chosen the best response.0value of the loan at 9months is the future i assume, not t

DanJS
 one year ago
Best ResponseYou've already chosen the best response.0FV = P + P*r*t FV = P(1+r*t)

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0oh....ok...I see now. FV = 7000 + 7000 * 0.12 * 9/12(or 3/4)

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0FV = 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
 one year ago
Best ResponseYou've already chosen the best response.0oh alright what was the amount of interest
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