SOLUTION: A corporate executive took out a $25,000 loan at an 8.8% annual simple interest rate for 1 year. Find the maturity value of the loan.

Question 1077892: A corporate executive took out a $25,000 loan at an 8.8% annual simple interest rate for 1 year. Find the maturity value of the loan.
Found 2 solutions by jorel1380, rapture:
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
25000 x 1.088=$27200 value at the end of one year. ☺☺☺☺
Answer by rapture(86) (Show Source): You can put this solution on YOUR website!
The maturity value formula is V = P x (1 + r)^n. You see that V, P, r and n are variables in the formula. V is the maturity value, P is the original principal amount, and n is the number of compounding intervals from the time of issue to maturity date. The variable r represents the periodic interest rate.

V = 25,000 x (1 + 0.088)^1

V = 25,000 x (1.088)

Can you finish?
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