Leslie Hart borrowed $15,900 to pay for her child’s education at Riverside Community College. Leslie must repay the loan at the end of 6 months in one payment with interest.

Question

(a)
How much interest must Leslie pay? (Do not round intermediate calculation. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
(b)
What is the maturity value? (Do not round intermediate calculation. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Answer 1

a) Interest $ 298.12
b)Maturity value $ 16,198.12

a:
$15,900 × 0.0375 ×6/12 =$298.13

b:
MV = P + I
= $15,900 + $298.13
= $16,198.13