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18 March, 03:32

What is the maturity date of a loan for $4,000 at 15% exact interest taken out on June 7? The amount of interest on the loan was $120.

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  1. 18 March, 05:39
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    The loan is due on August 18th

    Explanation:

    Simple interest is defined as the amount that is paid on a loan over a period of time. The interest is paid along with the principal in the course of loan tenure.

    The formular for simple interest bis given as

    Interest = principal * Interest rate * time

    We are to calculate the loan duration and it was disbursed on June 7.

    120 = 4,000 * 0.15 * time

    Time = 120 / (4,000*0.15) = 0.2 years

    Time = 0.2 * 365 days

    Time = 73 days

    Therefore the loan is due on August 18th
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