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harkovskaia [24]
3 years ago
8

Colleen Ellis bank granted her a single-payment loan of 5000 for 90 days at 9 percent ordinary interest. What is the maturity va

lue of the loan
A. 5,112.50

B. 5,692.00

C. 5,872.10

D. 5,150.00
Mathematics
2 answers:
irga5000 [103]3 years ago
3 0

<u><em>A</em></u> would be correct. Hope i helped

DedPeter [7]3 years ago
3 0

Answer:

Maturity value of the loan is 5,112.50

Step-by-step explanation:

Ordinary interest is calculated on a basis of 360 days, so that time in 90 days would give;

\frac{90}{360} = 0.25

Principal = 5000

rate = 9%

time = 0.25

I = \frac{PRT}{100}

where I is the ordinary interest

= \frac{5000* 0.25*9}{100}

= 112.5

I = 112.5

the matured value of the loan is P + I

= 5000 + 112.5

= 5112.5

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