BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Using exact interest, what is the amount due (maturity value) on P40, 000.00 invested at 9% simple interest for 150 days?
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₱41, 639.73
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₱41, 739.73
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₱41, 479.45
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₱41, 939.73
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Explanation:
Detailed explanation-1: -Simple Interest Formula To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time.” This equation is the simplest way of calculating interest.
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.
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