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14 February, 10:54

Will Smith obtained a $2,000 loan to purchase a computer. His interest rate is 7% ordinary interest for 108 days. How much interest does he owe and what is the maturity value of the loan?

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  1. 14 February, 12:17
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    Interest earned

    I=prt

    I=2000*0.07 * (108/360)

    I=42

    Maturity value

    A=42+2000=2042
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