Answer
The statement is false.
A correct statement would be:
If $\$4,000$ is borrowed at $7.6\%$ for three months, the future value of the loan is $\$4,076$.
Work Step by Step
To find the future value, use the formula
$A=P(1+rt)$
where
P = principal amount borrowed,
r = interest rate per year, and
t= length of the loan.
Using the formula above, the future value will be:
$A= \$4000(1 + 7.6\% \cdot \frac{3}{12})
\\A= \$4,076$
Thus, the given statement is false.
The amount given in the statement is the interest, not the future value.
A correct statement would be:
If $\$4,000$ is borrowed at $7.6\%$ for three months, the future value of the loan is $\$4,076$.
