The maturity value of a $60,000, 9%, 40-day note receivable dated July 3 is
A)$60,000.
B)$66,000.
C)$65,400.
D)$60,600.

Question

Quizplus · Accepted Answer

The maturity value of a note is calculated by adding the interest to the principal. The interest is calculated as Principal x Rate x Time. For a $60,000 note at 9% for 40 days, the interest is $60,000 x 0.09 x (40/360) = $600. Therefore, the maturity value is $60,000 + $600 = $60,600.

The Maturity Value of a $60,000, 9%, 40-Day Note Receivable