find the marturity value of the loan of $2,300.00 after three years. the loan carries a simple interest rate of 7.3% per year.
I came up with $503.70 but not sure if that's right
How can the maturity value be less than the amount loaned?
i took $2,300.00x7.3%x3 and that's what i came up with?
That's the total interest. It is not the maturity value of the loan.
http://financial-dictionary.thefreedictionary.com/maturity+value
I m still not understanding it im supposed to divide it or x it??
Ok.
Let's suppose you loan a friend $2,300 at an interest rate of 7.3% a year.
How much will your friend pay you back after three years?
if i divide it i come up with 94,520.547945204
Be real. Think!
ok if i go 2,300 plus 7.3% i come up with 2,467.9 now is that 2,467.90 or just 2,467.9
You're getting closer.
You've already figured the interest. Add the interest to the principal. What do you get?