   Chapter 10.I, Problem 22RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Find the amount of interest and the maturity value of the following loans. Use the formula MV = P + I to find the maturity values.Principal Rate (%) Time Interest Maturity Value $135,000 7.7 18 months ________ ________ To determine To calculate: The maturity value and amount of interest for the loan of amount$135,000 issued at a rate of interest 7.7% over a period of 18 months.

Explanation

Given Information:

The loan of amount $135,000 issued at a rate of interest 7.7% over a period of 18 months. Formula used: The formula to compute the simple interest is, I=P×R×T Where, P is the principal amount, I is the amount of interest, R is the rate of interest and T is the time-period. And, the maturity rate is given as; Maturity Value =Interest + Principal MV=P+I Calculation: The amount of interest accrued from the issue of principal$135,000 at a rate of interest of 7.7% over a period of 18 months can be calculated in the following manner:

Interest Amount=P×R×T=135000×7

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

#### Find more solutions based on key concepts 