Tom borrowed $150,000 for his son Jeff's law school tuition at the University of Mississippi. Tom received a rate of 3.75% for 5 years. Using 360 days in a year, what is the maturity value of the loan?

Name: Tom borrowed $150,000 for his son Jeff's law school tuition at the University of Mississippi. Tom received a rate of 3.75% for 5 years. Using 360 days in a year, what is the maturity value of the loan?
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Question

Quizplus · Accepted Answer

Interest = $150,000 × .0375 × 5; = $28,125; MV = $150,000 + $28,125 = $178,125.

Tom Borrowed $150,000 for His Son Jeff's Law School Tuition