The maturity value of a $3,000,12%,6-month note is:
A)$360.
B)$3,600.
C)$3,000.
D)$3,180.

Question

Quizplus · Accepted Answer

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

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

Where:
Principal = $3,000
Interest = 12% = 0.12
Time = 6 months = 0.5 year

Plugging in the values, we get:

Maturity value = $3,000 + ($3,000 x 0.12 x 0.5)
Maturity value = $3,180

Therefore, the answer is D) $3,180.

The Maturity Value of a $3,000,12%,6-Month Note Is