Verified answer

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