7. Suppose that you are planning to take a four-year loan of $200,000 for your program....

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7. Suppose that you are planning to take a four-year loan of$200,000 for your program. The interest rate of this loan is 7% andits compounds annually. What would be the amount of interest?
8. Assume that a $50,000 investment is held for five years in asavings account with 5% simple interest paid annually. What is thefuture value of such investment?

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Q7
Time	Opening Balance	Interest	Closing Balance
1.00	200,000.00	14,000.00	214,000.00
2.00	214,000.00	14,980.00	228,980.00
3.00	228,980.00	16,028.60	245,008.60
4.00	245,008.60	17,150.60	262,159.20
Total Amount of interest over 4 years		62,159.20

Q8
Amount of investment	50,000.00
Simple Interest	5%
Amount of interest per year	2,500.00
Interest for 5 years = 2500*5	12,500.00

Future Value of investment = 50,000 + 12,500	62,500.00

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7. Suppose that you are planning to take a four-year loan of$200,000 for your program. The interest rate of this loan is 7% andits compounds annually. What would be the amount of interest?8. Assume that a $50,000 investment is held for five years in asavings account with 5% simple interest paid annually. What is thefuture value of such investment?