The maturity value of a $90,000 face value, 90-day note bearing interest at 9 percent is (Assume 360 days in a year.)
A)$2,025.
B)$8,100.
C)$98,100.
D)$92,025.

Question

Quizplus · Accepted Answer

To calculate the maturity value, we need to first calculate the interest on the note.

Interest = (Principal x Rate x Time) / 360

Where principal is $90,000, rate is 9%, and time is 90 days.

Interest = (90,000 x 9 x 90) / 360 = $2,025

The maturity value is the sum of the principal and the interest.

Maturity value = Principal + Interest = $90,000 + $2,025 = $92,025

Therefore, the answer is D, $92,025.

The Maturity Value of a $90,000 Face Value, 90-Day Note