BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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loan date
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maturity date
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maturity value
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term
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Detailed explanation-1: -Answer: Maturity value/Future value (F)-amount after t years; that the lender receives from the borrower on the maturity date.
Detailed explanation-2: -Glossary. maturity value. is the amount to be paid on the due date of a loan or the amount to be paid to an investor at the end of the period for which an investment has been made. principal. is the amount of money that has been invested or borrowed.
Detailed explanation-3: -Loan maturity date refers to the date on which a borrower’s final loan payment is due. Once that payment is made and all repayment terms have been met, the promissory note that is a record of the original debt is retired.
Detailed explanation-4: -MV = P * ( 1 + r )n Where, MV is the Maturity Value. P is the principal amount. r is the rate of interest applicable.
Detailed explanation-5: -Now proceed to the next six months. The future value after two compounding periods (one year) is calculated in the same way. Note that the equation FV=PV+i(PV) F V = P V + i ( P V ) can be factored and rewritten as FV=PV(1+i) F V = P V ( 1 + i ) .