Question

Next questionA man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows $27,000 for 3 years with a sirinterest rate of 1.5%. Determine the amount of money the man must repay after 3 years.The man must repay

Answer 1

Simple interest formula (not compound interest formula) is used here, as much as i know.

the formula is:

f = p * (1 + r * n).

f is the future value

p is the present value

r is the interest rate per time period

n is the number of time periods

Given

$\begin{gathered} P=27000 \\ r=1.5\%=\frac{1.5}{100}=0.015 \\ n=3years \end{gathered}$

Therefore, we have

$f=27000(1+0.015\times3)=\text{ \ }28215$

Hence, the answer is

$\begin{equation*} \text{\ }28215 \end{equation*}$