What is the maturity value of a simple interest note drawn in November 2019 and due on February 17, 2020? The notes earn 13.5% interest per year and have a face value of 100 000? *
Answers
Answer:
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Answer:
The simple interest is 11350.
Step-by-step explanation:
What is meant by simple interest rate?
Simple interest is the amount of interest accrued at a particular interest rate on a particular principal sum. Compound interest, on the other hand, is the interest that is computed using both the principal and the interest that has accumulated over the preceding period.
The principal of a loan or the initial deposit into a savings account is used to compute simple interest. Because simple interest doesn't compound, creditors can only impose interest on the principal amount, and borrowers are never obligated to pay interest on interest that has already accrued.
Given,
amount=100000
interest rate=13.5%
Simple interest =100000 (1+ 13.5/100)
=11350
Therefore the simple interest is 11350.
To learn more about simple interest refer to :
https://brainly.in/question/50748492
https://brainly.in/question/22034093
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