The maturity value of a $5,000, 6%, 60-day note receivable dated February 10th is
A) $5,050.
B) $5,025.
C) $5,000.
D) $5,300.

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 $5,000 note at 6% for 60 days, the interest is $5,000 x 0.06 x (60/360) = $50. Therefore, the maturity value is $5,000 + $50 = $5,050.

The Maturity Value of a $5,000, 6%, 60-Day Note Receivable