Find the maturity value of a loan of ​$800 after three years. The loan carries a simple interest rate of 6one half
​% per year.

To find the maturity value of a loan with simple interest, we can use the formula for simple interest and then calculate the total amount, or maturity value, at the end of the loan term.

### Step 1: Calculate the Simple Interest

The formula for simple interest (I) is:
\[
I = P \times r \times t
\]
where:
- $ P $ is the principal amount (initial loan amount),
- $ r $ is the annual interest

Learn how to calculate the maturity value of a $800 loan after three years with a simple interest rate of 6.5% per year. Understand the Simple Interest formula and steps involved in computing the final amount.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation