Step 1

We can start with the maturity value formula:

Where:

• P is the principal ($5000)
• r is the interest rate per year (10%)
• t is the loan duration in years (3 years).

Step 2

With P=5000, r=10% and t=3, we can substitute these values into the formula as shown (Note that, 10% is the same as ¹⁰/₁₀₀ ):

Step 3

The calculated maturity value is $6500. Hence, the answer is C.