A business owner borrows $30,000 at an interest rate of 10.5%. If the business owner borrows using simple interest for 19 months, what is the maturity value of the loan?
A. $4,462.50
B. $30,000
C. $35,000
D. $34,462.50
I got C which I guess is wrong. Please show me how you come up with your answer. tx : )

Question

A business owner borrows $30,000 at an interest rate of 10.5%.  If the business owner borrows using simple interest for 19 months, what is the maturity value of the loan?  
A. $4,462.50 
B. $30,000 
C.  $35,000 
D. $34,462.50 
I got C which I guess is wrong. Please show me how you come up with your answer. tx : )

anonymous · Answer

to be honest the answer I came up with is not even listed.

I did this    I=P x R x T

ganeshie8 · Answer

you got $34,987.50 ?

anonymous · Answer

yes

anonymous · Answer

did you get that too? Even if I rounded it off, it's still not $35,000.
The text says the answer is D but I dont see that

ganeshie8 · Answer

we both are correct. textbook is wrong maybe...

anonymous · Answer

yeah it's happened to me before, crap. I just went through hell to prove to the school it was wrong before

ganeshie8 · Answer

lol.. this happens a lot of times with any textbook..

anonymous · Answer

Im calling my campus right now!Thanks for your help!

ganeshie8 · Answer

ok.. have fun :)

anonymous · Answer

; )

anonymous · Answer

I have the same test and I also came up with an answer that is saying it is wrong...we are right

anonymous · Answer

yup talked to my teacher she said she would have the answer looked into