Question

Julius takes out a loan of $9,500, at 9.5% simple interest, for 4 months. what is the maturity value of the loan? (round to the nearest cent)

Answer 1

The maturity value of the loan is approximately $9,800.83.

Step-by-step explanation:

To calculate the maturity value of a loan, we can use the formula:

Maturity Value = Principal + (Principal * Interest Rate * Time)

Given that the principal is $9,500, the interest rate is 9.5%, and the time is 4 months, we can substitute these values into the formula:

Maturity Value = $9,500 + ($9,500 * 0.095 * rac{4}{12})

Maturity Value = $9,500 + ($9,500 * 0.095 * 0.3333)

Maturity Value = $9,500 + ($300.8333)

Maturity Value = $9,800.8333

Therefore, the maturity value of the loan is approximately $9,800.83.

Answer 2

270.75. Rounded to nearest cent would be 270. Hope I helped