Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.)
$2,243 borrowed at 
12
1
8
%
 from March 10 through December 20 of the same year
FV = $   

To find the maturity value (FV) of a loan, we use the formula for **simple interest**:

\[
FV = P + I
\]

Where:
- $ P $ is the principal (initial loan amount),
- $ I $ is the interest, which can be calculated using the formula $ I = P \times r \times t $,
  - $ r $ is the annual interest rate (in decimal form),
  - $ t $ is the time in years.

### Given:
- $ P = 2,243 $
- $ r = \frac{12\frac{1}{8}}{100} = 0.12125 $
- Time period from March 10 to December 20 is:
  - March 10 to December 20 = 285 days out of 365 in a year, so $ t = \frac{285}{365} \approx 0.7808 $ years.

Now, let's calculate the interest $ I $ and then find the maturity value $ FV $. I'll compute that for you.The maturity value (FV) of the loan is **$2,455.36**.

Would you like more details or have any questions about the calculations?

Here are 5 related questions for practice:
1. How would the maturity value change if the interest rate was 10%?
2. How would you calculate the maturity value if the loan period was 9 months instead?
3. What happens to the maturity value if the principal increases to $3,000?
4. How would you calculate the time period if the maturity date was February 15 of the following year?
5. How does compound interest differ from simple interest when calculating maturity value?

**Tip:** Always convert percentage rates to decimal form by dividing by 100 before applying them in formulas.

Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.) $2,243 borrowed at 12 1/8% from March 10 through December 20 of the same year. FV = $

Learn how to calculate the maturity value of a loan borrowed at $2,243 with an interest rate of 12 1/8% for a time period from March 10 to December 20 (285 days). This detailed solution covers the simple interest formula and time calculation method. Suitable for high school students in Grades 10-12.

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