Someone you know needs a loan and she is willing to pay you back $16,000 in exactly 8 years. If you'd like to earn 4.7% compounded annually on this loan, how much would you be willing to loan her today? Round to the nearest dollar.
Added by Edward H.
Step 1
To calculate the future value, we can use the formula for compound interest: \[FV = PV \times (1 + r)^n\] Where: FV = Future value PV = Present value (the loan amount) r = Interest rate per period (in this case, 4.7% or 0.047) n = Number of periods (in this Show more…
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