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Mkey [24]
3 years ago
12

Tim Hanes' bank granted him a single payment loan of $1,000 for 100 days at 12 percent ordinary interest. What is the maturity v

alue of the loan?
a. $1,578.01
b. $1,033.33
c. $1,120.00
d. $1,044.55​
Mathematics
1 answer:
mash [69]3 years ago
8 0

Answer:

$1032.87

Step-by-step explanation:

First we need to calculate the interest

Interest = Principal * rate * time/100

Interest = 1000 * 12 * 100/365 * 100

Interest = 12000/365

Interest = 32.87

maturity value = Principal + Interest

maturity value = 1000 + 32.87

maturity value = $1032.87

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third
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