Answer:
$2647.13
$2648.08
Step-by-step explanation:
To solve for the value of each loan we will use the formula:
[tex]A=P(1+rt)[/tex]
Let's break down the variables that we have.
P = $2,600
r = 7.25% or 0.0725
r2 = 7.50% or 0.0750
t = 90 days
Now since we're computing for two different types of interest, let's take it one at a time.
First the State Saving and Loan.
In this situation we are solving for ordinary interest, where we compute with the total number of days are 360
[tex]A=P(1+rt)[/tex]
[tex]A=2,600(1+(0.0725)(\dfrac{90}{360})[/tex]
[tex]A=2,600(1+(0.0725)(0.25)[/tex]
[tex]A=2,600(1+0.018125)[/tex]
[tex]A=2,600(1.018125)[/tex]
[tex]A=2,647.13[/tex]
The maturity value of State Savings and Loan is $2,647.13.
Now let's move on to the Security bank.
The security bank charges 7.5% exact interest. For exact interest we use 365 days.
[tex]A=2,600(1+(0.0750)(\dfrac{90}{365})[/tex]
[tex]A=2,600(1+(0.0750)(0.246575)[/tex]
[tex]A=2,600(1+(0.0184931)[/tex]
[tex]A=2,600(1.0184931)[/tex]
[tex]A=2,648.08[/tex]
The maturity value of the Security bank is $2,648.08.
