4. If $6,000 is obtained from a loan at 8% interest, to be repaid with a...

Question

Question

Answer 1

Answer #1

Answer 4

Formula :

F = P(1 + i)^t

where F = Future value , i = interest rate = 8% = 0.08 and t = time = 5, P = Initial Amount.

Here Initial amount = Amount obtained from a loan = 6,000 and we have to amount that have to be repaid after 5 years, i.e. we have to calculate F .

Hence using above formula we get :

F = P(1 + i)^t

=> F = 6000(1 + 0.08)⁵ = 8815.97

Hence, The total amount to be repaid = $8815.97

Answer 2

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