In cases of variable interest rates, such as those used on certain credit cards, the card’s interest rate may be expressed as the prime rate plus a set percentage. This means the rate rises and falls with the prime rate but always remains a fixed percentage above the prime rate at all times.
So to find the maturity value The formula is
Mv=p (1+r×t)
Mv maturity value?
P amount borrowed 50000
R interest rate 10.56% (7.35%+3.21%)
T since the interest is ordinary we divide the number of days by 360
175/360
Mv=50,000×(1+0.1056×(175÷360))
Mv=52,566.67
