Question

Marina Guzmon’s bank granted her a single-payment loan of $3,250 to pay a repair bill. She agreed to repay the loan in 31 days at an ordinary interest rate of 11.75%. What is the maturity value of the loan?

Answer 1

Answer:

The Maturity Value of loan is $3280.84

Step-by-step explanation:

We are given that :

Principal = $3250 ,

time = 31 days ,Time in years  = $\frac{31}{365}\approx0.085 years$

Rate of interest = 11.75%

$\text{The formula for calculating maturity level is given by}=Principal\cdot {(1+\frac{rate}{100})}^{time}\\\\\implies \text{Maturity Level}=3250\cdot {(1+\frac{11.75}{100})}^{0.085}\\\\\implies \text{Maturuty Level}=\ 3280.84$

Hence, the maturity level for the loan is $3280.84

Answer 2

So basically he is paying 11.75% of the 3250 dollars in interest. So it’s 3250+(11.75% of 3250)