Question

What is the maturity value of a single-

payment loan of $650 given for 80 days at

15% exact interest?

A $685.39

B $671.37

C $652.37

D $670.36

Answer 1

Answer:

(B)$671.37

Step-by-step explanation:

Interest Rate, r=15%=0.15

Time, t = $\dfrac{80}{365}$

Maturity Value at exact interest, S=P(1+rt)

$=\ 650 \left (1+0.15*\dfrac{80}{365}\right)\\\\=\ 671.37$

The correct option is B.