Answer: The maturity value is $43743
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount that was taken as loan.
R represents interest rate.
T represents the duration of the loan in years.
From the information given,
P = 42000
R = 8.3
T = 6 months = 6/12 = 0.5 years
I = (42000 × 8.3 × 0.5)/100 = $1743
The maturity value is the total amount paid after the duration of the loan. It becomes
42000 + 1743 = $43743
