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.
Join our FB group to download ZapZapMath Free today!
Join our Facebook Group
No Thanks. My Kids Don't Need To Learn Math