given Terry be bank granted him a single payment loan od4,400 at an interest rate of 6% exact interest the terms of the loan is 172 day
Loan Calculations for Terry Be
A. Exact Interest:
To calculate the exact interest, we can use the formula:
Exact Interest = (Principal * Interest Rate * Loan Term) / 36500
where:
Principal = $4,400
Interest Rate = 6%
Loan Term = 172 days
Plugging in the values, we get:
Exact Interest = ($4,400 * 6% * 172) / 36500 ≈ $124.41
Therefore, the exact interest on Terry's loan is $124.41.
B. Maturity Value of the Loan:
The maturity value of the loan is the sum of the principal amount and the exact interest. Therefore:
Maturity Value = Principal + Exact Interest
Maturity Value = $4,400 + $124.41 = $4,524.41
Therefore, the maturity value of Terry's loan is $4,524.41.
correct question
Terry Bergolt's bank granted him a single-payment loan of $4,400 at an interest rate of 6% exact interest. The term of the loan is 172 days.
A. What is the exact interest?
B. What is the maturity value of the loan?