Question

Answer
Problem 7c
What is the maturity value of $7,500 at 8% for 39 weeks?

Answer 1

$7950

Explanation:

The annual percentage rate is 8%.

If we consider 52 weeks make a year, then the weekly percentage rate is
`(8)/(52) = 0.1538\%`.

Now, we have to calculate the maturity value of $7500 at 8% APR for 39 weeks.

Assuming the interest rate as simple interest, the maturity amount will be

`7500(1 + (0.1538)/(100) * 39) = 7950` dollars. (Answer)