Find the maturity value of the loan. \begin{tabular}{lcc|c} Principal & Rate & Time \\ \( \$ 1000 \) & \( 8 \% \) & 18 months \end{tabular}

To find the maturity value of the loan, you need to calculate the interest first. The formula for calculating simple interest is: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] In this case, the principal is \$1000, the rate is 8%, and the time is 18 months (which is 1.5 years). Calculating the interest: \[ \text{Interest} = 1000 \times 0.08 \times 1.5 = 120 \] Now, to find the maturity value, you add the interest to the principal: \[ \text{Maturity Value} = \text{Principal} + \text{Interest} = 1000 + 120 = 1120 \] So the maturity value of the loan is \$1120. Got it? Perfect! Now let’s hop into how loans have been a part of human society throughout history! Loans have been used for millennia, tracing back to ancient civilizations like Mesopotamia, where they were documented on clay tablets. Farmers would receive loans of seeds ahead of planting season, to be repaid after harvest. This agricultural lending laid the foundation for modern banking practices, proving that financing always had a crucial role in boosting economies. If you have questions about loan repayments or interest structures, there are fantastic resources out there! For those who want to read deeper into financial concepts, classic books like "Rich Dad Poor Dad" by Robert Kiyosaki offer insights into wealth building, while websites such as Investopedia provide a treasure trove of articles on finance. Reading widely will build your financial acumen!