You expect to have $ 8 000$8 000 in one year. A bank is offering loans at 3.5 %3.5% interest per year. How much can you borrow​ today?

Question

You expect to have $ 8 000$8 000 in one year. A bank is offering loans at 3.5 %3.5% interest per year. How much can you borrow​ today?
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Solution 1

To calculate how much you can borrow today, you need to understand the concept of the time value of money, which in this case is represented by the interest rate of 3.5%.

The formula to calculate the present value (PV) is:

PV = FV / (1 + r)^n

where:

  • FV is the future value of the money (the amou Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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