Final answer:
The maturity value of the loan after 2 years is $3,203.20.
Step-by-step explanation:
To find the maturity value of a loan, we need to calculate the interest earned over the loan term and add it to the principal amount.
Given that the loan amount is $2,800.00 and the interest rate is 7.2% per year, we can calculate the interest earned each year:
Interest earned in the first year = $2,800.00 × 7.2%
= $201.60
Interest earned in the second year = $2,800.00 × 7.2%
= $201.60
To calculate the maturity value, we add the interest earned to the principal amount:
Maturity value = Principal + Interest
Maturity value = $2,800.00 + $201.60 + $201.60
= $3,203.20