Find the future value of the loan.
P = $13,200, r = 6.5%, t = 2 months
A)$14,673.20
B)$13,343.00
C)$14,677.30
D)$13,339.27

Question

Quizplus · Accepted Answer

The future value (FV) of a loan is calculated using the formula FV = P(1 + rt), where P is the principal amount, r is the annual interest rate (in decimal form), and t is the time in years. For this problem, P = $13,200, r = 6.5% or 0.065 (as a decimal), and t = 2/12 years (since 2 months is 2/12 of a year). Plugging these values into the formula gives FV = $13,200 * (1 + 0.065 * (2/12)) = $13,343.

Find the Future Value of the Loan