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Round all answers to the nearest cent. angel borrowed $82,000 for her granddaughter's college education. she must repay the loan at the end of nine years with 914% interest. what is the maturity value angel must repay?

User TheBen
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Final answer:

The maturity value Angel must repay is the sum of the original loan and the interest accrued over 9 years at a rate of 9.14%, which calculates to $149,258.80.

Step-by-step explanation:

To calculate the maturity value that Angel must repay for the loan, we'll use the simple interest formula, which is Interest (I) = Principal (P) × Rate (R) × Time (T). In this question, the principal is $82,000, the interest rate is 9.14% (expressed as a decimal 0.0914 for calculation), and the time is 9 years. First, we find the interest accrued over the period.

I = P × R × TI = $82,000 × 0.0914 × 9I = $67,258.80

Now, we add the interest to the principal to get the maturity value:
Maturity Value = Principal + InterestMaturity Value = $82,000 + $67,258.80Maturity Value = $149,258.80

Thus, the maturity value Angel must repay at the end of nine years, rounded to the nearest cent, is $149,258.80. This is the total amount including the original loan and the interest accrued over the 9-year period.

User Exic
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