Which term describes the sum of principal and interest of a loan at maturity?

The term that defines the sum of principal and interest of a loan at maturity is maturity value. When a loan reaches its maturity date, the borrower must repay the total amount that includes both the original loan amount (the principal) and any accrued interest over the term of the loan. Maturity value reflects the total financial obligation at the end of the loan period, providing a clear understanding of what the borrower is expected to pay back.

Other terms in the options relate to different financial concepts. For instance, net present value is a measure used in capital budgeting that calculates the profitability of an investment by assessing the difference between the present value of cash inflows and outflows. Future value pertains to the value of an investment at a specified date in the future, considering interest earned or growth. Gross loan amount refers to the total amount of money initially borrowed, excluding any interest or fees that would be due at the end of the term. Each of these terms plays a significant role in finance, but none accurately describes the total amount due at the maturity of a loan as effectively as maturity value does.