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How would you compute interest and find the maturity date in a financial context?

User Druss
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Final answer:

To compute interest, multiply the principal amount by the interest rate. To find the maturity date, know the term of the bond.

Step-by-step explanation:

In a financial context, to compute interest, you would multiply the principal amount by the interest rate. For example, if a bond has a principal amount of $3,000 and an interest rate of 8%, the interest after the first year would be $3,000 * 0.08 = $240. To find the maturity date, you would need to know the term of the bond, which represents how long the bond will be outstanding. For example, if the bond has a term of 2 years, the maturity date would be 2 years from the date it was issued.

User Abdelghani
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