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

Business & Finance
Tutor: None Selected Time limit: 1 Day

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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Apr 25th, 2015
...
Apr 25th, 2015
Dec 4th, 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