A promissory note has a face value of $6000 and it has a date of issue of June 1 this year. The term is for 6 months. The rate of interest is 8.00%. What is the maturity value of the note?
A) $6242.60
B) $6246.60
C) $6200.60
D) $6248.60
E) $6244.60

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated by adding the interest earned to the face value. Interest = Principal × Rate × Time = $6000 × 8% × (6/12) = $240. Therefore, the maturity value = $6000 + $240 = $6240. The correct option is E) $6244.60, which seems to be a slight mistake in calculation. The correct calculation leads to $6240, but based on the provided options, E is the closest.

A Promissory Note Has a Face Value of $6000 and It