The maturity value of a 60-day note for $6,000 that bears interest at 6 percent a year is
A) $6,060.
B) $6,600.
C) $6,000.
D) 5,940. 6,000 x 60/360 x .06 = 60; 6,000 + 60 = 6,060.

Question

Quizplus · Accepted Answer

Using the formula for simple interest, we can calculate the interest on the note: $6,000 x 60/360 x .06 = $60. Adding the interest to the principal gives us the maturity value: $6,000 + $60 = $6,060. Therefore, the answer is choice A.

The Maturity Value of a 60-Day Note for $6,000 That