Answer:
Explanations:
The formula for calculating the simple interest is expressed as:
[tex]I=\text{PRT}[/tex]where:
• P is the, principal, = $6,000
,• R is the ,rate, = 0.044
,• Time T = 10/12 years
Substitute the given parameters into the formula
[tex]\begin{gathered} I=6,000\times0.044\times\frac{10}{12} \\ I=\frac{2640}{12} \\ I=\$220 \end{gathered}[/tex]Hence the amount of interest paid on this loan is $220
Maturity value = Principal + Interest
Maturity value = $6000 + $220
Maturity value = $6,220
Hence the maturity value of this loan is 6,220
