Explanation Given Information: Principal amount of loan is $ 15 , 800 , rate of interest is 7 % and time period is 4 years. Formula used: The formula to calculate maturity value is, M V = P ( 1 + R T ) Where, MV is maturity value, P is principal amount, I is the amount of interest, T is the time period. Calculation: Consider that principal amount of loan is $ 15 , 800 , rate of interest is 7 % and time period is 4 years. Simplify the rate of interest as, 7 % = 7 100 = 0.07 Compute the maturity value by substituting $ 15 , 800 for principal, 0

Contemporary Mathematics for Business & Consumers

8th Edition

ISBN: 9781305886803

Author: Brechner

Publisher: Cengage

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Chapter 10, Problem 5AT

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To calculate: The maturity value of the loan where principal amount is $15,800, rate of interest is 7% and time period is 4 years.

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Chapter 10 Solutions

Contemporary Mathematics for Business & Consumers

Ch. 10.I - Find the amount of interest on each of the...Ch. 10.I - Joe Hale goes to a credit union and borrows...Ch. 10.I - Prob. 3TIE Ch. 10.I - Prob. 4TIE Ch. 10.I - a. A loan was made on April 4 and had a due date...Ch. 10.I - a. What is the maturity date of a loan taken out...Ch. 10.I - Prob. 1RE Ch. 10.I - Prob. 2RE Ch. 10.I - Prob. 3RE Ch. 10.I - Prob. 4RE

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The maturity value of the loan where principal amount is $ 15 , 800 , rate of interest is 7 % and time period is 4 years.

Solution Summary: The author explains the formula used to calculate the maturity value of a loan, where principal amount is 15,800, rate of interest 7% and time period 4 years.

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To calculate: The maturity value of the loan where principal amount is $15,800, rate of interest is 7% and time period is 4 years.

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Chapter 10 Solutions