Canton Graphics issues a $22,000, 10%, 8-month note to Bowden Corporation. Interest on the note is _________ and the maturity value is __________. (Do not round any intermediate calculations. Round your final answers to the nearest dollar.)
A) $1,467; $22,000
B) $1,467; $23,467
C) $23,467; $1,467
D) $22,000; $1,467

Question

Quizplus · Accepted Answer

The interest on the note is calculated as Principal x Rate x Time = $22,000 x 10% x (8/12) = $1,467. The maturity value is the sum of the principal and the interest, which is $22,000 + $1,467 = $23,467.

Canton Graphics Issues a $22,000, 10%, 8-Month Note to Bowden