SOLUTION: In order ti start a small business, a student takes out a simple interest loan for $4000 for 9 months at a rate of 8.25%. a-) How much interest must the student pay? b-) Find the

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Question 597924: In order ti start a small business, a student takes out a simple interest loan for $4000 for 9 months at a rate of 8.25%.
a-) How much interest must the student pay?
b-) Find the future value of the loan.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
FV = PV*(1+rt)

FV = 4000*(1+0.0825*(9/12))

FV = 4247.5

a)
The student must pay 4247.5 - 4000 = 247.50 dollars in interest

b)
The future value of the loan is 4247.50 dollars.