Maturity Value of the loan is $4096.44
Step-by-step explanation:
Step 1 :
Formula for ordinary interest = p*n*r/100
where p = principal, n = number of years and r = rate of interest.
Step 2 :
Given p = $4000 , n = 80 days = 80/365 year , r = 11%
Therefore interest = p*n*r/100 = (4000*80*11)/(365*100) = $96.44
Ordinary interest = $96.44
Step 3 :
Maturity Value = principal + interest = 4000 +96.44 = $4096.44
