Question

Calculate the maturity value of simple interest a seven months loan of $6,000 if the interest rate is 7.6%

Answer 1

ANSWER

$6266$

EXPLANATION

Given;

$\begin{gathered} p=6000 \\ R=7.6\% \\ T=\frac{7}{12} \end{gathered}$

Now using the formula for simple interest

$I=\frac{PRT}{100}$

substituting the values we have;

$\begin{gathered} I=\frac{6000\times7.6\times7}{100\times12} \\ =266 \end{gathered}$

Now the interest after 7 months would be

$266$

The maturity value is

$\begin{gathered} P+I \\ =6000+266 \\ =6266 \end{gathered}$