A 60-day,12% note for $15,000 dated May 1 is received from a customer on account.The maturity value of the note is (Assume 360 days in a year):
A)$15,300.
B)$15,000.
C)$14,700.
D)$16,800.

Question

Quizplus · Accepted Answer

First, we need to calculate the interest on the note which will be 12% of $15,000 for 60 days (2 months) or:

($15,000 x 0.12)/360 x 60 = $300

Next, we add the interest to the principal amount to get the maturity value of the note, or:

$15,000 + $300 = $15,300

Therefore, the correct answer is A) $15,300.

A 60-Day,12% Note for $15,000 Dated May 1 Is Received