136,288 views
20 votes
20 votes
The simple interest due on a 60-day loan of $7100 is $87.57. Find the maturity value of the loan.

User Pedro Fillastre
by
2.6k points

1 Answer

25 votes
25 votes

The maturity value is the total amount that must be repayed after the given time. Thus,

maturity value = interest + principal

From the information given,

Principal = 7100

Interest = 85.57

Thus,

maturity value = 7100 + 87.57

maturity value = $7187.57

User Jsedano
by
2.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.