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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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To calculate the future value FV of the loan we can use the formula FV PV 1 ... blur-text-image

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