Answer :

The maturity value of a 3-month, $8,000 loan at an annual interest rate of 2.7% is $8,054. This includes the principal and the calculated interest. The interest is $54.

To calculate the maturity value of a simple interest loan, you can use the formula:

Maturity Value = Principal + (Principal × Rate × Time)

  1. Principal: $8,000
  2. Annual Interest Rate: 2.7% (or 0.027 as a decimal)
  3. Time: 3 months (or 3÷12 years, which is 0.25 years)

First, calculate the interest:

Interest = $8,000 × 0.027 × 0.25 = $54

Then, add the interest to the principal to find the maturity value:

Maturity Value = $8,000 + $54 = $8,054

Therefore, the maturity value of the loan is $8,054.

Other Questions