Find the interest and maturity value for the loan. Round to the nearest cent.
-$10,593 at 6.9% for 9 months
A)$552.79; $11,145.79
B)$548.19; $11,141.19
C)$609.10; $11,202.10
D)$487.28; $11,080.28

Question

Quizplus · Accepted Answer

To find the interest, we can use the formula:
Interest = Principal x Rate x Time
where Principal is $10,593, Rate is 6.9% or 0.069, and Time is 9/12 (since the duration is given in months and we need it in years).

Interest = 10,593 x 0.069 x 9/12 = $548.19

To find the maturity value, we add the interest to the principal:

Maturity value = Principal + Interest = $10,593 + $548.19 = $11,141.19

Therefore, the best choice is B. To find the interest, we use the formula:

Interest = Principal x Rate x Time

where Principal is $10,593, Rate is 6.9% or 0.069, and Time is 9 months or 9/12 = 0.75 years.

Thus, Interest = $10,593 x 0.069 x 0.75 = $548.19 (rounded to the nearest cent)

To find the maturity value, we add the interest to the principal:

Maturity Value = Principal + Interest = $10,593 + $548.19 = $11,141.19 (rounded to the nearest cent)

Therefore, the answer is B.

Find the Interest and Maturity Value for the Loan