Problema Solution
what is the maturity value of the following loan? Principle $120,740, Rate 11.75%, Time 7 month:
Answer provided by our tutors
interest = principal * rate * time
time = 7/12 of 1 one
interest = 120740 * 0.1175 * 7/12 = 8275.72
maturity value: 120740 + 8275.72 = 129015.72
maturity value is $129,015.72