Solve the problem. Round dollar amounts to the nearest cent. Use ordinary interest unless otherwise indicated.
-HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water. The boat lifts cost $59,700 each. They borrowed the money from the bank for 240 days at 8%. Find
The maturity value.
A)$251,536.00
B)$64,476.00
C)$257,904.00
D)$62,884.00

Question

Quizplus · Accepted Answer

The maturity value is the sum of the principal and the interest. The interest is calculated as the principal multiplied by the interest rate multiplied by the time. In this case, the principal is $59,700, the interest rate is 8%, and the time is 240 days. So, the interest is $59,700 * 0.08 * 240 / 360 = $3,225.60. The maturity value is $59,700 + $3,225.60 = $62,925.60. Rounded to the nearest cent, the maturity value is $62,925.60.

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