Given:
loan amount = 600 000
time duration = 10 days
interest rate = 12.2%
The maturity value (MV) is calculated using the formula:
[tex]\begin{gathered} MV\text{ = amount loaned + interest} \\ =\text{ P(1 + rt)} \\ \text{Where P is the amount loaned} \\ r\text{ is the rate of interest} \\ \text{and t is the time} \end{gathered}[/tex]Substituting we have;
[tex]MV\text{ = 600000(1 + 0.122}\times\frac{10}{365})[/tex]Since there are 365 days in a year.
Simplifying we have:
[tex]\begin{gathered} MV\text{ = 600000}\times1.003342466 \\ =\text{ 602005.4795} \\ \approx\text{ 602005.48} \end{gathered}[/tex]Hence, the maturity value is about 602005.48.
