PDF Single Payment Loan

 Single Payment Loan = A loan that you repay with

ONE payment after a specified time period.

Maturity value of the loan = the TOTAL amount

you must pay

Principal of the loan = the amount you BORROW Term = how LONG you have to pay it back.

Important Questions

How do I calculate exact simple interest?

How do I calculate the maturity value?

What Formulas Do I Use? Interest = Principal x Rate x Time (in years)

Maturity Value = Principal + Interest Owed

 Example 1:

Daysie's bank granted her a single-payment loan of $7,200 for 91 days at 12 percent exact interest. What is the maturity value of the loan?

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