The amount of cash paid at maturity date on a $9,000 face value, 60-day note bearing interest at 6% is
A) $9,720
B) $9,090
C) $9,000
D) $7,200 9000 x 60/360 x .06 = 90; 9000 + 90 = 9090.

Question

Quizplus · Accepted Answer

We can use the simple interest formula to find the amount of interest on the note: I = P x r x t, where P is the principal (face value), r is the interest rate, and t is the time in years. Since the note has a face value of $9,000 and a 60-day (or 2-month) term, we have:
I = 9,000 x 0.06 x (60/360) = 90
So, the total amount due at maturity (or face value plus interest) is:
9,000 + 90 = 9,090
Therefore, the answer is choice B.

The Amount of Cash Paid at Maturity Date on a $9,000