Question: the answer is E but I need to see how to work it out 10. A loan is discounted at a simple discount rate of

the answer is E but I need to see how to work it out

10. A loan is discounted at a simple discount rate of 3.906% per year for 3 years. If the proceeds are $7,150, what is the maturity value of the loan? Choose the numeric value that most closely approximates the answer: Possibilities: (a) $7987.84 (b) $8020.99 (c) $7913.26 (d) $8038.90 (e) $8099.05

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