Business math=*

Question

Find the maturity value of a $32,000 loan that is made for 6 years at 12%. 

Answer 1

Here's how to find the maturity value of the loan:

1. Calculate the total interest:
2. Interest = Principal * Interest Rate * Time
3. Interest = $32,000 * 0.12 * 6 years
4. Interest = $19,200
5. Add the interest to the principal to find the maturity value:
6. Maturity Value = Principal + Interest
7. Maturity Value = $32,000 + $19,200
8. Maturity Value = $51,200

Therefore, the maturity value of the loan is $51,200.

Additional Notes:

1. Make sure to use the correct interest rate format. In this case, the interest rate was given as a percentage, so we converted it to a decimal (0.12) by dividing by 100.
2. Double-check your calculations to ensure accuracy.

I hope this helps! Let me know if you have any other questions.