Answer: maturity value = $17816.67
Step-by-step explanation:
The formula for calculating simple interest is expressed as
I = PRT
where
I is the interest
P is the principal or initial amount
R is the interest rate
T is the time in years
From the information given,
P = 17104
R = 12.5% = 12.5/100 = 0.125
We would convert 4 months to years. Recall
12 months = 1 year
4 months = 4/12 = 1/3
Thus, the interest is calculated as follows
I = 17104 x 0.125 x 1/3 = 712.67
maturity value = principal + interest
maturity value = 17104 + 712.67
maturity value = $17816.67