The maturity value of a 90-day note for $8,000 that bears interest at 10 percent a year is
A) $7,800.
B) $8,000.
C) $8,200.
D) $8,800. 8,000 x 90/360 x .1 = 200; 8,000 + 200 = $8,200.

Question

Quizplus · Accepted Answer

Using the formula for simple interest, we can calculate that the interest on the note is $200 (8,000 x 90/360 x .1 = 200). Adding the interest to the principal, the maturity value of the note is $8,200. Therefore, the best choice is C.

The Maturity Value of a 90-Day Note for $8,000 That