loan is taken out for 1019 dollars for 26 years. If the loan is a compund interest loan at 8.3 percent compounded monthly what is the future value of the loan?

Question

I did use the formula FV=P(1+r/m)∧mt but I got the wrong answer.

Answer 1

In the formula, did you express and enter the interest rate as 8.3 or as .083?

Answer 2

You have the right formula.

 

P = investment

r = interested rate

t = time

m = number of times compounded per year

FV = future value loan

 

 

Plug in these values into the formula to find FV.

 

P = 1019

r = 0.083

m = 12

t = 26