marcus takes out a loan of $9,500, at 9.5% simiple interest for 4 months. what i

Algebra
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marcus takes out a loan of $9,500, at 9.5% simiple interest for 4 months. what is the maturity value of the loan? round to the nearest cent

Jun 20th, 2015

Thank you for the opportunity to help you with your question!

Principal = $9500

Rate = 9.5% per annum

Time = 4 months = 4/12 years = 1/3 years

Simple interest = Principal * Rate * Time ................................(rate in %)

SI = $9500 * 9.5% * 1/3

SI = $300.83

Final maturity amount, A = Principal + Interest

A = $ 9500 + $ 300.83

A = $9800.83

A = $9801 .............(rounded to nearest integer)

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 20th, 2015

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