A 90-day,8% note for $10,000 dated May 1 is received from a customer on account.
The maturity value of the note is
A)$10,000.
B)$10,800.
C)$10,200.
D)$9,800.

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated by adding the interest to the principal. The interest for 90 days on $10,000 at 8% per annum is $200. Therefore, the maturity value is $10,000 + $200 = $10,200.

A 90-Day,8% Note for $10,000 Dated May 1 Is Received