The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is
A) $40,000.
B) $44,000.
C) $43,600.
D) $40,400.

Name: The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is A) $40,000. B) $44,000. C) $43,600. D) $40,400.
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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. Here, $40,000 x 9% x (40/365) = $400. Therefore, the maturity value is $40,000 + $400 = $40,400.

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