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3 September, 21:06

To take advantage of a bicycle manufacturer's closeout special on bikes, Wheels Inc. borrowed $50,000 from Union Trust Bank. Union Trust Bank charged 3.21% ordinary interest over prime on the loan. The term of the loan was 175 days and the prime rate was 7.35%. What was the maturity value of the loan?

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  1. 3 September, 21:09
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    To solve this problem you need to substitute the given to the formula of finding the maturity value S = P (1+rt) where P is the principal, r is the interest rate, and t is the loan duration. The answer to this question is $226,198.63.
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