Manuel fraser’s bank granted him a single-payment loan of $9,650. he agreed to repay the loan in 146 days at an ordinary interest rate of 7.75%. what is the maturity value of the loan?

Maturity Value=$ 9953.305

Step-by-step explanation:

Manuel Fraser’s bank granted him a single-payment loan of $9,650.

He agreed to repay the loan in 146 days at an ordinary interest rate of 7.75%.

i.e. we have:

P=$ 9650

R=7.75

T=146 days= 146/360 year.

Now the interest(I) on the loan is given by the formula as:

Hence, on putting the values of P, R and T in the formula of the interest we obtain:

Hence, the maturity value is:

Maturity value=P+I

                     = 9650+303.305

                    = $ 9953.305

Hence,

Maturity Value=$ 9953.305

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