A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is
A) $10,000
B) $10,150
C) $10,900
D) $9,100

Question

Quizplus · Accepted Answer

To calculate the maturity value of a note, we need to add the interest to the principal.

For this note: 
Principal = $10,000 
Interest rate = 9% 
Time = 60 days

To calculate the interest, we can use the simple interest formula: 
Interest = Principal x Rate x Time 
Interest = $10,000 x 0.09 x (60/360) 
Interest = $150

Now we can calculate the maturity value: 
Maturity value = Principal + Interest 
Maturity value = $10,000 + $150 
Maturity value = $10,150

Therefore, the correct answer is B.

A 60-Day, 9% Note for $10,000, Dated May 1, Is