Chapter 10.I, Problem 23RE

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Chapter
Section

Contemporary Mathematics for Busin...

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

Find the maturity value of the following loans. Use MV = p (1 + RT) to find the maturity values.Principal Rate (%) Time Maturity Value $1,500 9 2 years$1,770.00

To determine

To calculate: The maturity value of an amount $1,500 issued at a rate of interest 9 % over a period of 2 years. Explanation Given Information: The principle amount is$ 1500, rate of interest is 9 % and the time-period is 2 years.

Formula used:

The maturity value of the loan is given by the formula;

MV=P(1+RT)

Here P is the principal amount, R is rate of interest and T is the time-period.

Calculation:

Consider the principal amount $1,500 at a rate of interest 9% for the time-period of 2 years. So, P=$1,500R=9%

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