Question

question 2 (10 points)
you secure a loan for $20,700. the simple interest rate is 3.75%. how much will you pay in total on the loan after 18 years?
use this formula:
$fv = pv(1 + rt)$
enter the dollar amount rounded to the nearest cent.
your answer:
answer
view hint for question 2

Explanation:

Step1: Identify values

$PV = 20700$, $r = 3.75\% = 0.0375$, $t = 18$

Step2: Substitute into formula

$FV = 20700(1 + 0.0375\times18)$

Step3: Calculate inside the parentheses

$0.0375\times18 = 0.675$; $1 + 0.675 = 1.675$

Step4: Multiply by PV

$FV = 20700\times1.675 = 34672.5$

Answer:

$34672.50$