What is the maturity value of the following loan? Use MV = P(1 + RT) to find the maturity.

Principal=$120,740, Rate=11¾ and Time= 7 months

What is the maturity value of the following loan? Use MV = P(1 + RT) to find the maturity.

Principal=$120,740, Rate=11¾ and Time= 7 months

To find the maturity value of a loan using the formula MV = P(1 + RT), we need to substitute the given values. In this case, the principal (P) is $120,740, the rate (R) is 11¾ (11.75% expressed as a decimal), and the time (T) is 7 months.

First, we need to convert the percentage rate into a decimal by dividing it by 100:

Rate = 11¾% = 11.75 ÷ 100 = 0.1175

Next, we can substitute the values into the formula:

MV = P(1 + RT)
= $120,740(1 + 0.1175 × 7)

Now, we can calculate the result:

MV = $120,740(1 + 0.8225)
= $120,740(1.8225)
= $220,106.65

Therefore, the maturity value of the loan is $220,106.65.