Question

Find the Interest Owing and Maturity Value for Following: (Do not round intermediate calculations and round your final answer to 2 decimal places.)

$1925 at 4.05% for 575 days.
Interest Amount: $_____
Maturity Value: $______

Answer 1

The interest owing is $120.11 and the maturity value is $2045.11.

Step-by-step explanation:

To find the interest owing and maturity value, we can use the formula:

Interest Owing = Principal(amount) x Rate x Time

Maturity Value = Principal + Interest Owing

Plugging in the values, we get:

Interest Owing = $1925 x 0.0405 x (575/365)

Maturity Value = $1925 + Interest Owing

Calculating these values:

Interest Owing = $120.11

Maturity Value = $2045.11