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Exercise: When trading up, homeoners buy a new house before they sell their old house, and one way to cover the costs until the old

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Exercise: When "trading up," homeoners buy a new house before they sell their old house, and one way to cover the costs until the old house is sold is with a short-term bridge loan. A bank charges 10% simple interest on such a loan. How much will be owed at the maturation (the end) of a 30 week bridge loan of $200,000 One term used in that last example was the term maturation. When an investment matures, that is another word for saying the agreed upon time period of t years has passed and the investment concludes. At the point of maturation, A will equal the future value of the investment, and the original investment is returned to the investor, along with (at least part of) the interest earned. I say "part of" because some investments used by the stock market, banks, and the government involve selling prices being negotiable or having a fee attached to them. This can sometimes be seen in one of the primary ways companies and governments raise money, and that selling bonds. Similar to U.S. Treasury notes, they are essentially simple interest accounts that people pay money for at a present value, with the promise that after so

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