218k views
4 votes
What is the maturity date of a loan for $4,000 at 15% exact interest taken out on June 7? The amount of interest on the loan was $120.

1 Answer

5 votes

Answer:

The loan is due on August 18th

Step-by-step explanation:

Simple interest is defined as the amount that is paid on a loan over a period of time. The interest is paid along with the principal in the course of loan tenure.

The formular for simple interest bis given as

Interest= principal* Interest rate* time

We are to calculate the loan duration and it was disbursed on June 7.

120= 4,000* 0.15* time

Time = 120/(4,000*0.15)= 0.2 years

Time = 0.2* 365 days

Time= 73 days

Therefore the loan is due on August 18th

User Ganapathy
by
8.1k points