What is the future value of Dennaes loan if she borrows 7,500 at 6.75% simple interest for 3 years? 

To calculate the future value of Dennae's loan under simple interest, we use the formula:

\[
FV = P(1 + rt)
\]

Where:
- $ FV $ is the future value (what she will owe at the end of the loan period),
- $ P $ is the principal (the initial amount borrowed),
- $ r $ is the annual interest rate (as a decimal),
- $ t $ is the time in years.

Given:
- $ P = 7,500 $,
- $ r = 6.75\% = 0.0675 $,
- $ t = 3 $ years,

we can plug in the values:

\[
FV = 7,500 \times (1 + 0.0675 \times 3)
\]
\[
FV = 7,500 \times (1 + 0.2025)
\]
\[
FV = 7,500 \times 1.2025 = 9,018.75
\]

Thus, the future value of Dennae's loan is **$9,018.75**.

Would you like more details on this calculation or have any questions?

Here are 5 related questions to expand on this:
1. How would the future value change if the loan period was 5 years?
2. What happens to the future value if the interest rate is compounded annually instead of simple interest?
3. How can Dennae reduce the amount of interest paid over the loan period?
4. What if Dennae made partial repayments each year? How would this affect the future value?
5. How does the formula for compound interest compare to the formula for simple interest?

**Tip:** For simple interest, interest is only calculated on the original principal, while compound interest adds interest to the amount already accrued.

What is the future value of Dennaes loan if she borrows 7,500 at 6.75% simple interest for 3 years?

Learn how to calculate the future value of a loan using simple interest. This example walks through borrowing $7,500 at 6.75% simple interest for 3 years, explaining key concepts and formulas for Grades 9-11 math students.

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