Find the maturity value on a $7480 face-value note for 226 days if the discount rate is 12%.
A) $8043.49
B) $8051.43
C) $6916.51
D) $7535.58

Question

Quizplus · Accepted Answer

The formula to find the maturity value of a discounted note is:

Maturity Value = Face Value / (1 - Discount Rate x Time)

Plugging in the given values, we get:

Maturity Value = 7480 / (1 - 0.12 x 226/365)
Maturity Value = 7480 / 0.89479
Maturity Value = 8,343.49

Therefore, the answer is (A) $8,043.49.

Find the Maturity Value on a $7480 Face-Value Note for 226