Question

Sid burrowed a single payment loan at $10,000 at an interest rate of 5.5%. The term of the loan is 120 days. What is the maturity value of his loan at exact interest?

Answer 1

`A=P(1+i)^t`

For this case

P = 10 000

i=0.055

t=120

After you compute the formula you would get

A = 6 170 141