The amount of cash paid at maturity date on a $12,000 face value, 90-day note bearing interest at 10% is
A) $1,200
B) $12,000
C) $300
D) $12,300 12000 x 90/360 x .10 = 300; 12000 + 300 = 12300.

Question

Quizplus · Accepted Answer

The amount of cash paid at maturity date on a $12,000 face value, 90-day note bearing interest at 10% is calculated using the formula: Face Value x Time x Rate = Interest. Plugging in the values, we get: 12,000 x 90/360 x .10 = 300. Therefore, the total amount paid at maturity date would be the face value plus the interest, which is $12,300. Thus, the best choice is D.

The Amount of Cash Paid at Maturity Date on a $12,000