Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.)
$2,228 borrowed at 
12
1
8
%
 from March 10 through December 20 of the same year

To calculate the maturity value $ FV $ of a loan, we use the simple interest formula:

\[
FV = P(1 + rt)
\]

Where:
- $ P $ is the principal (initial loan amount)
- $ r $ is the annual interest rate (in decimal form)
- $ t $ is the time in years
- $ FV $ is the maturity value

### Given:
- $ P = 2,228 $
- $ r = \frac{12 \frac{1}{8}}{100} = 0.12125 $
- Time: From March 10 to December 20 is 285 days. Convert this into years: 
  \[
  t = \frac{285}{365} \approx 0.7808 \, \text{years}
  \]

Now let's calculate the maturity value $ FV $.The maturity value $ FV $ of the loan is **$2,438.94**.

Would you like further details or have any other questions? Here are some related questions to explore:

1. How does the time period affect the interest on a loan?
2. What is the difference between simple and compound interest?
3. How would the maturity value change if the loan duration was longer?
4. What happens to the interest if the rate is compounded monthly instead of annually?
5. How do changes in the interest rate impact the total amount repaid?

**Tip:** Always double-check the time period when calculating interest, especially when the loan spans parts of two different years.

Find the maturity value FV of the given loan amount. (Round your answer to the nearest cent.) $2,228 borrowed at 12 1/8% from March 10 through December 20 of the same year.

Learn how to calculate the maturity value of a $2,228 loan with a 12 1/8% interest rate over 285 days (from March 10 to December 20). This detailed step-by-step solution uses the simple interest formula FV = P(1 + rt) and converts days to years for accurate results. Ideal for students in Grades 9-12.

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