Anny takes out a loan of \( \$ 1,200 \), at \( 4 \% \) interest, for 54 months. Use the formula \( M V=P+I \) to find the maturity value (in \( \$ \) ). \( \$ \) Need Help? Read it Wateh it Master It SUBMIT ANSWER

To calculate the maturity value (MV) of Anny's loan, we first need to determine the interest (I) using the formula \( I = P \cdot r \cdot t \), where \( P \) is the principal amount (\$1,200), \( r \) is the interest rate (4% or 0.04), and \( t \) is the time in years. In this case, 54 months is equal to \( 54/12 = 4.5 \) years. Now, let's calculate the total interest: \( I = 1200 \times 0.04 \times 4.5 = 120 \). Now, plug that back into the maturity value formula: \( MV = P + I = 1200 + 120 = 1320 \). So, the maturity value is \( \$1,320 \). It's fascinating to see how loans work, isn’t it? Interest is essentially the cost of borrowing money, and knowing how to calculate it can save you a lot of cash over time. Whether for personal loans, mortgage payments, or credit cards, understanding interest calculation can help you make better financial decisions! If you're eager to dive deeper, consider exploring more about different types of interest rates such as simple vs. compound interest, and how they can impact loans and savings differently over time. Websites dedicated to financial literacy, such as the National Endowment for Financial Education, offer fantastic resources and interactive tools to help you master the concepts!