The maturity value for a $7500,78-day note at 8% interest is $130.

Question

Quizplus · Accepted Answer

The formula for calculating the maturity value of a note is MV=P(1+rt), where P is the principal, r is the interest rate, t is the time in years, and MV is the maturity value. Using this formula, we can solve for P: 
130 = P(1 + 0.08*(78/365))
130 = P(1.017534)
P = 127.71
Therefore, the maturity value for a $7500, 78-day note at 8% interest is not $130, but rather $127.71.

The Maturity Value for a $7500,78-Day Note at 8% Interest