Question

Marina Guzmon’s bank granted her a single-payment loan of $3,250 to pay a repair bill. She agreed to repay the loan in 31 days at an ordinary interest rate of 11.75%. What is the maturity value of the loan?

Answer 1

So basically he is paying 11.75% of the 3250 dollars in interest. So it’s 3250+(11.75% of 3250)

Answer 2

The Maturity Value of loan is $3280.84

Explanation:

We are given that :

Principal = $3250 ,

time = 31 days ,Time in years =
`(31)/(365)\approx0.085 years`

Rate of interest = 11.75%

`\text{The formula for calculating maturity level is given by}=Principal\cdot {(1+(rate)/(100))}^(time)\\\\\implies \text{Maturity Level}=3250\cdot {(1+(11.75)/(100))}^(0.085)\\\\\implies \text{Maturuty Level}=\$3280.84`

Hence, the maturity level for the loan is $3280.84