Solve the problem. Round dollar amounts to the nearest cent. Use 360 days.
-HarbourTown Marina purchased four boat lifts for raising and lowering large boats into the water. The boat lifts cost $61,300 each. They borrowed the money from the bank for 240 days at 10%. Find the maturity value.
A) $65,386.67
B) $261,546.67
C) $67,430.00
D) $269,720.00

Question

Quizplus · Accepted Answer

The maturity value is calculated by adding the principal to the interest. The principal is $61,300 * 4 = $245,200. The interest is calculated as Principal * Rate * Time = $245,200 * 0.10 * (240/360) = $16,346.67. Therefore, the maturity value is $245,200 + $16,346.67 = $261,546.67.

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