The maturity value for a loan of $2,000 at 9% interest for two years was found to

Question:

The value for a loan of $2,000 at 9% interest for two years was found to be $4,360. Examine the solution to identify the incorrect mathematical process. Explain the correct process and rework the problem correctly.
MV = P(1 + RT)
MV = $2,000(1 + 0.09 × 2)
MV = $2,000(1.09 × 2)
MV = $2,000(2.18)
MV = $4,360
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...