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Serga [27]
3 years ago
13

5. Jon Metcalf signed a 253-day simple interest note for $7700 with a bank that uses exact interest. If the rate is 10 3/4% find

the maturity value.
Mathematics
1 answer:
morpeh [17]3 years ago
4 0

Answer:

8281.72

Step-by-step explanation:

Given:

Principal, P = 7700

Rate, r = 10 3/4 % = 43/4 % = 0.1075

Time, t = 253 days = 253/ 360

Using the relation :

A = P(1 + rt)

A = maturity value

A = 7700(1 + 0.1075*253/360)

A = 7700(1 + 0.0755486)

A = 7700(1.0755486)

A = 8281.7243

A = 8281.72

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