Calculate the maturity value of a simple interest, eight-month loan of $15,000 if the interest rate is 4.5%.
P = Po + Po*r*t
P = 15,000 + 15,000*0.045*(8/12)
Solve for P.
To calculate the maturity value of a simple interest loan, you need to know the principal amount, the interest rate, and the time period.
In this case, the principal amount is $15,000, the interest rate is 4.5% (or 0.045 as a decimal), and the time period is 8 months.
To find the maturity value, you can use the following formula:
Maturity Value = Principal + (Principal * Interest Rate * Time)
Substituting the given values into the formula:
Maturity Value = $15,000 + ($15,000 * 0.045 * 8/12)
Simplifying the equation:
Maturity Value = $15,000 + ($15,000 * 0.03)
Maturity Value = $15,000 + ($450)
Maturity Value = $15,450
Therefore, the maturity value of the eight-month loan with a principal amount of $15,000 and an interest rate of 4.5% is $15,450.