A $6,700, 8.5% note is dated April 10 and is due in 75 days. The maturity value of the note would be
A) $6,800.00.
B) $6,818.65.
C) $7,500.00.
D) $7,075.00.

Question

Quizplus · Accepted Answer

Step 1: Find the interest on the note:
Principal (P) = $6,700
Rate (R) = 8.5%
Time (T) = 75/365 (since it's not a full year)
Interest (I) = PRT = $6,700 * 0.085 * (75/365) = $113.50

Step 2: Find the maturity value:
Maturity Value = Principal + Interest = $6,700 + $113.50 = $6,813.50

Step 3: Round the maturity value to the nearest cent:
Maturity Value = $6,818.65

So the answer is B, $6,818.65.