Consumer Mathematics: Financial Management
Maturity value
The final amount of a savings or investment after interest, from the given formula.
| English | Maturity value |
|---|---|
| Bahasa Melayu | Nilai matang |
| 中文 | 到期值 |
How it is used
RM5,000 is saved at 4% simple interest for 3 years. The interest is I = 5000 × 0.04 × 3 = RM600, so the maturity value is 5000 + 600 = RM5,600.
Where it shows up in SPM
In Financial Management, maturity value is usually the final part of a Paper 2 savings or investment question, asked after you have found the interest. It also appears with compound interest, where maturity value = P(1 + r)ⁿ.
Don't confuse it with
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Frequently asked questions
Is maturity value always principal plus interest?
Yes, that is the idea in every case. For simple interest use maturity value = P + Prt; for compound interest use maturity value = P(1 + r)ⁿ, which already includes the principal, so you do not add P again.
Can I work backwards from the maturity value to find the principal?
Yes. For simple interest rearrange maturity value = P(1 + rt) to get P = maturity value ÷ (1 + rt).
If RM5,600 comes from 3 years at 4%, then P = 5600 ÷ (1 + 0.04 × 3) = 5600 ÷ 1.12 = RM5,000.