The amount of cash paid at the maturity date on a $12,000 face value,90-day note bearing interest at 10 percent is
A) $1,200.
B) $12,000.
C) $300.
D) $12,300.

Question

Quizplus · Accepted Answer

The amount of interest on the note can be calculated as:

Interest = Face Value x Rate x Time
Interest = $12,000 x 0.10 x (90/360)
Interest = $300

Therefore, the total amount to be paid at maturity (Face Value + Interest) is:

Total amount = Face Value + Interest
Total amount = $12,000 + $300
Total amount = $12,300

So, the answer is D.

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