Question

Solve. Capitol City Bank approves a home-improvement loan application for $13,000 at an annual simple interest rate of 8.25% for 210 days. What is the maturity value of the loan? (Round your answer to the nearest cent.)

Answer 1

Hello there. To solve this question, we'll need to remember some properties on investments.

The exact interest can be computed by the formula:

Principal * rate * time /365

In this case, we'll have:

13000 * 0.0825 * 210/365 = 617.05

The maturity value of the loan will be:

Principal + Interest owed

In this case,

13000 + 617.05

Add the values

$13617.05

This is the answer to this question.