How much money can an engineer borrow now to start up his ne

How much money can an engineer borrow now to start up his new consulting office if he commits to make payments of $15,000 per year for 5 years. Assume the loan interest rate is 8% per year.

Solution

number of years= 5

rate of interest is 8% per year

total interest for 5 years is 8*5= 40%

given amount is $15,000

so value after 5 years is 40% of $15,000

= $6,000

so total money after 5 years= $15,000+$6000

=$ 21,000.