Question

Mr. Pan borrows R 1 200 for a term of 4 years from Mr. Gullible, with interest at 15 % per annum simple. Find the future value of the loan.


R 1 920


R 750


R 1 200


R 8 400


R 9 840

GPT 3.5
The formula for calculating simple interest is:

Future Value = Principal + (Principal x Rate x Time)

Given:
Principal (P) = R 1 200
Rate (R) = 15% = 0.15
Time (T) = 4 years

Future Value = 1 200 + (1 200 x 0.15 x 4)
Future Value = 1 200 + 720
Future Value = 1 920

Therefore, the future value of the loan is R 1 920.

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