10) Find the total amount of money (maturity value) that the borrower will pay b

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10) Find the total amount of money (maturity value) that the borrower will pay back on a loan of $3429 at 14% annual simple interest for 2.8 years. 

A) $4725.16 

B) $5253.23 

C) $4773.17 

D) $4136.46

Apr 25th, 2015

C) $4773.17

Because this is simple interest, the interest is not compounded and the interest per year will stay the same. 14% x 3429 gives $480.06 interest per year; this times 2.8 (the number of years) gives total interest of 1344.17. The interest of 1344.17 plus the principal of 3429 totals 4773.17. 

Apr 25th, 2015

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