Evan purchased a boat for $8825. He made a down payment of $2500. He applied for a three-year installment loan with an interest rate of 10.2%. What is the total cost of the boat after three years

The present worth of the boat is $8825. The interest rate is 10.2% and it's not stated whether or not the interest is nominal, so we assume it's annual and effective. We use the formula:

F = P (1 + i) ^n

where F is the future worth

P is the present worth

i is the effective annual interest rate

n is the number of years

Substituting:

F = 8825 (1 + 0.102) ^3

F = 11810.26

The future worth of the boat is

$11,810.26