Answer:
Interest= 15,000
Maturity Value=40,000
Step-by-step explanation:
Simple Interest
V= (principal) * (rate) * (# of periods)
=(25,000)*(0.12)*(5)
=15,000
Maturity Value
V= P*(1+rt)
=25,000*(1+(.12)(5))First, converting R percent to r a decimal
r = R/100 = 12%/100 = 0.12 per year.
Solving our equation:
V = 25000(1 + (0.12 × 5)) = 40000
V = 40,000.00
