Answer:
The future value of loan amount after 4 months is $ 34,695.136
Step-by-step explanation:
Given as :
The loan principal = $ 34300
The rate of interest applied = 3.5 %
The time period = 4 months = [tex]\frac{1}{3}[/tex] year
Let The amount after 4 months = $ A
From compounded method
Amount = Principal × [tex](1+\dfrac{\textrm Rate}{100})^{Time}[/tex]
or, Amount = 34300 × [tex](1+\dfrac{\textrm 3.5}{100})^{\frac{1}{3}}[/tex]
or, Amount = 34300 × [tex](1.035)^{\frac{1}{3}}[/tex]
or, Amount = 34300 × 1.01152
∴ Amount = $ 34,695.136
Hence The future value of loan amount after 4 months is $ 34,695.136 Answer
