Will smith obtained a $2,000 loan to purchase a computer. his interest rate is 7% ordinary interest for 108 days. how much interest does he owe and what is the maturity value of the loan?

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:

Here we have:

P=$ 2,000

R=7

T=108 days=108/360 years.

Hence,

Hence, the interest he owe= $ 42.

Also maturity value= P+I

                              =2000+42

                             = $ 2042

Hence,

Interest he owe= $ 42.

Maturity Value= $ 2042

question:

could we have options?