A bank made a farmer a loan of $1,400 at 16% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with simple interest for the same period. Future value=S (Round to the nearest cent as needed.)
A bank made a farmer a loan of $1,400 at 16% for three years compounded annually. Find the future value and the compound interest paid on the loan. Compare the compound interest with simple interest for the same period. Future value=S (Round to the nearest cent as needed.)
Chapter1: Making Economics Decisions
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![A bank made a farmer a loan of $1,400 at 16% for three years compounded annually. Find the future value and the compound interest paid on the
loan. Compare the compound interest with simple interest for the same period.
Future value=S
(Round to the nearest cent as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93d6464e-f155-4940-8921-7114e2ab97cc%2Fd5ca47d1-9a15-4781-9a9b-67639ea9320f%2Fhw5c7ci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A bank made a farmer a loan of $1,400 at 16% for three years compounded annually. Find the future value and the compound interest paid on the
loan. Compare the compound interest with simple interest for the same period.
Future value=S
(Round to the nearest cent as needed.)
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