Question

Calculate the simple interest and maturity vale. (do not round intermediate calculations. Round your answers to the nearest cent). principal $20,000 interest rate 6 3/4% time 9 months what is the simple interest? and what is the maturity value ?

Answer 1

The simple interest given the principal, time and interest rate is $1012.50.

The maturity value is $21,012.50.

What is the simple interest?

An amount earns simple interest only if the principal increases in value when interest is paid and not both the principal and the interest already accrued.

Simple interest = principal x time x interest rate

$20,000 x 9/12 x 0.0675 = $1012.50

Maturity value = $1012.50 + $20,000 = $21,012.50

To learn more about interest, please check: brainly.com/question/26164549