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

Algebra
Tutor: None Selected Time limit: 1 Day

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

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Jun 20th, 2015
...
Jun 20th, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer