Question

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

Answer 1

`6266`

Step-by-step explanation

Given;

`\begin{gathered} p=6000 \\ R=7.6\% \\ T=(7)/(12) \end{gathered}`

Now using the formula for simple interest

`I=(PRT)/(100)`

substituting the values we have;

`\begin{gathered} I=(6000*7.6*7)/(100*12) \\ =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}`