The maturity value of a 90-day note for $4,000 that bears interest at 10 percent is (Assume 360 days in a year.)
A)$4,400.
B)$4,100.
C)$4,000.
D)$3,900.

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated by adding the interest earned to the principal amount. Interest = Principal × Rate × Time = $4,000 × 10% × (90/360) = $100. Therefore, the maturity value = Principal + Interest = $4,000 + $100 = $4,100.

The Maturity Value of a 90-Day Note for $4,000 That