SOLUTION: Lynne needs to borrow $7500 for cosmetic surgery. She obtains a loan from her grandmother for 24 months at a simple interest rate of 8.5%. What is the loans future value?
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Question 1181212: Lynne needs to borrow $7500 for cosmetic surgery. She obtains a loan from her grandmother for 24 months at a simple interest rate of 8.5%. What is the loans future value? Answer by ikleyn(52879) (Show Source):
The future value of this simple interest loan is
FV = 7500*(1 + 0.085*2) = 8775 dollars.
Here the number of "2" represents 2 years = 24 months.
Solved, answered and explained.
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To see many other similar (and different) solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.
