Question

1)Find the future value of a simple interest loan of $16,500 at 7.5% interest for 7 months

2)Find the present value of $3,000 in 7 months at 9.4% interest

Round to nearest cent

Answer 1

1)

First, converting R percent to r a decimal
r = R/100 = 7.5%/100 = 0.075 per year.

Putting time into years for simplicity,
7 months / 12 months/year = 0.583333 years.

Solving our equation:
A = 16500(1 + (0.075 × 0.583333)) = 17221.8745875
A = $17,221.87

2)

First, converting R percent to r a decimal
r = R/100 = 9.4%/100 = 0.094 per year.

Putting time into years for simplicity,
7 months / 12 months/year = 0.583333 years

Solving our equation:
P = 3000 / ( 1 + (0.094 × 0.583333)) = 2844.0512774027
P = $2,844.05

Note:- For the second question, please confirm whether the second question is also for simple interest and not compound interest, I have solved using simple interest.