Find the maturity value of the simple interest note.
-Face Value: $5,912
Length of Loan: 224 days
Rate: 12%
A)$5,470.57
B)$6,353.43
C)$6,359.65
D)$5,955.54

Question

Quizplus · Accepted Answer

The maturity value of a simple interest note can be calculated using the formula: Maturity Value = Principal + (Principal * Rate * Time), where Time is in years. For this problem, Principal = $5,912, Rate = 12% or 0.12, and Time = 224 days out of 365 days = 224/365 years. Thus, Interest = $5,912 * 0.12 * (224/365) = $441.43. Therefore, Maturity Value = $5,912 + $441.43 = $6,353.43.

Find the Maturity Value of the Simple Interest Note