Question

You borrowed 12000 for 6 years at interest rate of 1.25% what is the maturity value of the loan

Answer 1

$12,928.60

Explanation:

We can use A = P(1 + r)^t to solve this

Step 1: Plug known variables

P = 12000(1 + 0.0125)^6

Step 2: Solve

P = 12000(1.0125)^6

P = 12928.6

And we have our final answer!