BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal (P)
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Interest (I)
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Simple Interest
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Maturity Value or Future Value (F)
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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: -The Maturity Value (MV) of a loan is the sum of the principal P plus the interest I. In Example 1, Jo borrowed $2000 at an interest rate of 5%. At the end of one year Jo owed $100 in interest. The maturity value of the loan is MV = P + I where P = $2000 and I = $100.
Detailed explanation-3: -The maturity value of a loan is the total amount you must repay, including the principal and any interest you incur. The term of the loan is the time for which it has been granted.
Detailed explanation-4: -Maturity value is the amount due and payable to the holder of a financial obligation as of the maturity date of the obligation. The term usually refers to the remaining principal balance on a loan or bond. In the case of a security, maturity value is the same as par value.
Detailed explanation-5: -Fixed deposit maturity amount formula (A) = P*(1+r/N)n*N read more they make with the banks in which they have their salaried accounts. The formula can be used to calculate the reverse interest rate when one has maturity value to know the true rate of interest earned on the investment, as we did in our last example.