Question

What is the maturity value of a single-

payment loan of $650 given for 80 days at

15% exact interest?

A $685.39

B $671.37

C $652.37

D $670.36

Answer 1

(B)$671.37

Explanation:

Interest Rate, r=15%=0.15

Time, t =
`(80)/(365)`

Maturity Value at exact interest, S=P(1+rt)

`=\$650 \left (1+0.15*(80)/(365)\right)\\\\=\$671.37`

The correct option is B.