On April 12, Michelle Lizaro borrowed $5,000 from her credit union at 9% for 80 days. The credit union uses the ordinary interest method.

a. What is the amount of interest on the loan?

$

b. What is the maturity value of the loan?

$

c. What is the maturity date of the loan?

Enter the full name of the month. (E.g., March

1 answer

a. I = Po*r*t = 5000*(0.09/360)*80 = $100 = Interest.

b. V = Po + I = 5000 + 100 = $5100 =
Maturity value.

c. July 1.