document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193159>Question 1193159</A>: <I><SPAN STYLE=\"word-break: break-all;\"> On March 5, 2016, Blake borrowed $79,650 from Equitable Bank at 4.09% p.a; he settled the loan on June 4, 2019.\r<BR>\n" );
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document.write( "a) How much was the maturity value of the loan?\r<BR>\n" );
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document.write( "b) How much was the amount of interest charged on the loan? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848856 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848856\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **a) Calculate the Maturity Value**\r<BR>\n" );
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document.write( "* **Principal Amount:** $79,650<BR>\n" );
document.write( "* **Annual Interest Rate:** 4.09% <BR>\n" );
document.write( "* **Time Period:** March 5, 2016 to June 4, 2019 (approximately 3 years and 3 months)\r<BR>\n" );
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document.write( "**Calculate the Total Interest:**\r<BR>\n" );
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document.write( "1. **Convert the annual interest rate to a decimal:** 4.09% = 0.0409<BR>\n" );
document.write( "2. **Calculate the interest for one year:** $79,650 * 0.0409 = $3,257.85<BR>\n" );
document.write( "3. **Calculate the interest for 3 years:** $3,257.85 * 3 = $9,773.55<BR>\n" );
document.write( "4. **Calculate the interest for 3 months (assuming 30 days per month):** $3,257.85 * (3/12) = $814.46<BR>\n" );
document.write( "5. **Calculate the total interest:** $9,773.55 + $814.46 = $10,588.01\r<BR>\n" );
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document.write( "**Calculate the Maturity Value:**\r<BR>\n" );
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document.write( "* Maturity Value = Principal + Total Interest<BR>\n" );
document.write( "* Maturity Value = $79,650 + $10,588.01 = $90,238.01\r<BR>\n" );
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document.write( "**Therefore, the maturity value of the loan is approximately $90,238.01.**\r<BR>\n" );
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document.write( "**b) Amount of Interest Charged**\r<BR>\n" );
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document.write( "* **The amount of interest charged on the loan is $10,588.01.**\r<BR>\n" );
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document.write( "**Note:** This calculation assumes simple interest. If the loan accrued compound interest, the calculations would be slightly different.<BR>\n" );
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