For this problem, we are given the principal for an account, the rate at which it gets compounded, and the elapsed time. We need to calculate the future value of the loan.
Assuming that the account is compounded every year, we can use the following expression to calculate the future value:
[tex]A=8000\cdot(1.06)^7[/tex]
Solving for A, we have:
[tex]\begin{gathered} A=8000\cdot1.5036\\ \\ A=12029.04 \end{gathered}[/tex]
The future value of the loan is $12029.04.
