The future value of a loan is the A. compounded value of the interest payments. B. value of the profits the firm will earn from investing the loan. C. present value plus the interest rate. D. amount of money the firm pays.

A. compounded value of the interest payments.

Explanation:

let's assume you take out a loan of $50,000 at an interest rate of 5% annually for 2 years, the future value of the loan :

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years

$50,000(1.05)^2 = $55,125

We can see that the future value of the loan was determined by (1 + r)^n which is the compounded value of interest payments

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.