Stephen W. answered • 10/21/12

CPA with passion for teaching and helping others

I'm not sure what the question is referring to as "table value", but this is solved using simple interest calculation (no compounding). I have left the structure of the solution without solving the entire problem, so that you can learn the fomula, etc.

Beginning Date 5/15/2010

Ending Date 10/13/2010

Days in lending period 148

Days in year 360

Percentage of year in lending period **(solve for this)**

**Interest calculation**

Principal amount 703,000

x Rate, annual **(provided in question)**

x Percentage of year **(from above answer)**

Product of above (interest due at maturity) **(solve for this) A**

Add: Principal amount due at maturity 703,000 **B**

Total due at maturity **(solve for this) A + B**

** **

**Remember: interest due = principal amount X rate (annual) X time (percentage of year that loan is outstanding). Don't forget to add back in the principal amount due at maturity, as well. **

** **

Good luck!