The simple interest due on a 30-day loan of $5900 is $84.00. Find the maturity value of the loan.
A) $5846.00
B) $6014.00
C) $5816.00
D) $5984.00
E) $568.93

Question

Quizplus · Accepted Answer

Let the rate of interest be x.
Using the simple interest formula, we have:
SI = P * R * T / 100
84 = 5900 * x * 30 / 100
x = 0.02
The maturity value is given by:
M = P + SI
M = 5900 + (5900 * 0.02 * 30 / 100)
M = $5984.00
Therefore, the answer is D.

The Simple Interest Due on a 30-Day Loan of $5900