The maturity value for a $8,000, 81-day note at 10% interest is $180.

Question

Quizplus · Accepted Answer

The maturity value of a note is calculated by adding the principal amount to the interest earned over the period. The interest for an $8,000 note for 81 days at a 10% annual interest rate would be more than $180. Interest = Principal x Rate x Time = $8,000 x 10% x (81/365) = $177.26 (approximately), and when added to the principal, the maturity value would be significantly higher than $180.

The Maturity Value for a $8,000, 81-Day Note at 10