Calculate the maturity value of a 180-day note for $4000 dated August 18 if the rate of interest is 7.5%.
A) 4147.95
B) 4150.41
C) 5479.45
D) 5504.11
E) 4440.41

Question

Quizplus · Accepted Answer

The maturity value is calculated using the formula: Maturity Value = Principal + (Principal * Rate * Time). Here, Principal = $4000, Rate = 7.5% or 0.075, and Time = 180/365. Maturity Value = 4000 + (4000 * 0.075 * 180/365) = 4150.41.

Calculate the Maturity Value of a 180-Day Note for $4000