Answer:
Hence,
Interest he owe= $ 42.
Maturity Value= $ 2042
Step-by-step explanation:
Will Smith obtained a $2,000 loan to purchase a computer.
His interest rate is 7% ordinary interest for 108 days.
So, we will use the simple interest(I) formula to calculate the interest as:
[tex]I=\dfrac{P\times R\times T}{100}[/tex]
Here we have:
P=$ 2,000
R=7
T=108 days=108/360 years.
Hence,
[tex]I=\dfrac{2000\times 7\times \dfrac{108}{360}}{100}\\\\\\I=\dfrac{2000\times 7\times 108}{100\times 360}\\\\\\I=42[/tex]
Hence, the interest he owe= $ 42.
Also maturity value= P+I
=2000+42
= $ 2042
Hence,
Interest he owe= $ 42.
Maturity Value= $ 2042
