The maturity value of an $8,000, 6.5%, 3-month note receivable dated February 10, with interest due at maturity, is
A)$8,000.
B)$8,065.
C)$8,130.
D)$8,520.

Question

Quizplus · Accepted Answer

The maturity value is calculated by adding the interest to the principal. The interest for 3 months on an $8,000 note at 6.5% annual interest is $8,000 * 6.5% * (3/12) = $130. Therefore, the maturity value is $8,000 + $130 = $8,130.

The Maturity Value of an $8,000, 6