Calculate the maturity value of a $5000 loan with the simple interest of 10% per year. The duration of the loan is 3 years.
We can start with the maturity value formula:
With P=5000, r=10% and t=3, we can substitute these values into the formula as shown (Note that, 10% is the same as 10/100 ):
The calculated maturity value is $6500. Hence, the answer is C.
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