The maturity value of a 12%, 60-day note for $1,000 is $1,020.(Assume 360 days in a year)

Question

Quizplus · Accepted Answer

The formula to calculate the maturity value of a note is:

Maturity value = Principal + (Principal x Interest Rate x Time)

Using this formula, we can calculate the maturity value of the given note as:

Maturity value = $1,000 + ($1,000 x 0.12 x (60/360))

Maturity value = $1,000 + $20

Maturity value = $1,020

Therefore, the statement is true.

The Maturity Value of a 12%, 60-Day Note for $1,000