Find the interest and maturity value for the loan. Round to the nearest cent. 16

Question

Find the interest and maturity value for the loan. Round to the nearest cent. 16) $5585 at 13% for 3 months A) $242.02; $5827.02 B) $183.04; $5768.04 C) $181.51; $5766.51 D) $121.01; $5706.01 Solve for the missing values. Round money to the nearest cent, rate to the nearest tenth of a percent, and time to the nearest day. 17) Principal: $6759 Interest: ? Rate: 8.8% Time: 167 days Maturity value: ? A) $279.80; $7038.80 B) $275.92; $7034.92 C) $288.43; $7047.43 D) $255.84; $7014.84 Find the present value or future value. Round to the nearest cent. 18) Present Value: ? Interest Rate: 12.8% Time: 235 days Future value: $162 A) $149.35 B) $140.43 C) $150.56 D) $149.51

Explanation / Answer

Taking simple interest = P X R X T / 100

Principal : P = $5585

Rate of interest : R = 13%

Time in years : T = 3months = 3/12 year = 1/4 yr

Interest = 5585 x 13 / 100 x 4 = $181.51

Maturity value = Principal + Interest = $5585 + $181.51 = $5766.51

Option (c) is correct.

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