Calculate the future value of two loans after 3 years, considering compound interest.

This problem involves calculating the future value of two separate loans and then summing them up. The formula for compound interest is:

$$A = P \left(1 + \frac{i}{m}\right)^{m \cdot n}$$

where:

• $A$ is the future value
• $P$ is the principal amount
• $i$ is the annual interest rate (as a decimal)
• $m$ is the number of times interest is compounded per year
• $n$ is the number of years

We need to calculate the value of each debt three years from now.

Step 1: Calculate the future value of the first loan.

• Principal ($P_1