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26 October, 05:21

Find the maturity value of a loan of $6787 after 4 months. the loan carries a simple interest rate of 14% per year.

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  1. 26 October, 06:29
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    Principal, P = 6787

    Interest rate, i = 14% per year (simple)

    Time, t=4/12=1/3 year

    Maturity value

    F=P (1+it)

    =6787 (1+0.14 * (1/3))

    = 7103.73 (to the nearest cent)
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