Duerr company makes a 79000 30day 12 cash loan to Ryan Co Th

Duerr company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)

Multiple Choice

$79,000.

$790.

Incorrect

$79,790.

$78,210.

$88,480.

The interest on the cash loan to Ryan and Co is $79000*12%*30/360 = $790

Therefore maturity value = Principal + Interest = $79000+$790 = $79790

or Maturity value = Principal*(1+rate*time)

= $79000*(1+(12%*30/360)

= $79000(1.0100)

=$79790