When the time period of a loan or investment is reached, the loan or investment is said to

When the time period of a loan or investment is reached, the loan or investment is said to "mature." This means that the agreed-upon duration of the loan or investment has ended, and the principal amount along with any accrued interest is due to be paid back or settled.

In the context of loans, maturity signifies that the borrower must repay the principal along with any final interest payments as stipulated in the loan agreement. For investments, maturity indicates that the investment has reached its term, usually signaling the end of a bond’s or savings account's investment period, where the investor will receive their initial investment back plus any interest earned.

Understanding maturity is important for effective financial planning, as it impacts cash flow and investment strategy choices.