A 60-day, 12% 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) $10,200
C) $11,200
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 60 days is calculated as $10,000 * 12% * (60/365) = $200. Therefore, the maturity value is $10,000 + $200 = $10,200.

A 60-Day, 12% Note for $10,000, Dated May 1, Is