Juan dimes received a single payment loan from his loan for $4,000. he agreed to repay the loan in 90 days at an interest rate o

Question

3 years ago

15

Juan dimes received a single payment loan from his loan for $4,000. he agreed to repay the loan in 90 days at an interest rate o

f 8.5% exact interest. what is the maturity value of his loan when he pays it back in 90 days.
$83.84
$4,085.00
$4,083.84
$85.00

Mathematics

2 answers:

Elanso [62] · Answer 1 · 2022-10-12T08:00:33+03:00

Elanso [62]3 years ago

5 0

Answer:

4008.5

Step-by-step explanation:

AVprozaik [17] · Answer 2 · 2022-10-12T05:38:35+03:00

9514 1404 393

Answer:

(c) $4,083.84

Step-by-step explanation:

The amount due is ...

A = P(1 +rt)

where P is the amount borrowed, r is the annual rate, and t is the number of years. For "exact interest", we use 365 days in a year, so the number of years is 90/365.

A = $4000(1 + 0.085×90/365) ≈ $4083.84

Juan's loan will have a value of $4083.84 at maturity.