Respuesta :
Using simple interest, it is found that the maturity value of the loan is of 10,638.
Simple Interest
The amount of money after t years in simple interest is modeled by:
[tex]A(t) = A(0)(1 + rt)[/tex]
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
In this problem:
- A loan of 10450 is taken, hence [tex]A(0) = 10450[/tex].
- Interest rate of 8.25%, hence [tex]r = 0.0825[/tex]
- The loan will be repaid in 75 days, considering the time in years, [tex]t = \frac{75}{365}[/tex]
Then, the maturity value of the loan is:
[tex]A(t) = A(0)(1 + rt)[/tex]
[tex]A\left(\frac{75}{365}\right) = 10450\left[1 + 0.0875\frac{75}{365}\right] = 10638[/tex]
The maturity value of the loan is of 10,638.
To learn more about simple interest, you can take a look at https://brainly.com/question/26207710
