Question

Daryl took out a single payment loan for $890 that charged a $40 fee. How

much does he have to pay by the time the loan reaches maturity?

Answer 1

$930

Explanation:

Daryl took out a single payment loan for $890.

That charged a $40 fee.

He takes loan of $890 that charged a $40 fee for a single time, so his maturity amount = loan amount + fees of $40

He have to pay by the time the loan reaches maturity = 890 + 40

= $930

He have to pay $930 by the time of maturity.

Answer 2

$930

Explanation:

The amount payable at maturity of the loan is simply the sum of the loan amount and the fee charged on the loan.

The loan amount is 890 while the fee charged on the loan is 40. The amount repayable at maturity is thus;

890 + 40 = 930.

Therefore, he has to pay $930 by the time the loan reaches maturity.