Question
Suppose you borrow $7,800 from a local bank and promise to repay this amount at the end of 3 years at the interest rate of
Suppose you borrow $7,800 from a local bank and promise to repay this amount at the end of 3 years at the interest rate of 9%, how much would you have to repay (FV)?
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Step: 1
To calculate the future value FV of the loan we can use the formula FV PV 1 ...Get Instant Access to Expert-Tailored Solutions
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
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