A company borrows $10,700 from the bank at 13% interest for thirty days. $10,700 is the ________ of the note. The maturity value of the note is ________. For computation of interest, use a 365 day year. (Round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The principal of the note is the initial amount borrowed, which is $10,700. The maturity value is the principal plus interest. The interest for 30 days is calculated as $10,700 * 0.13 * (30/365) = $114. Therefore, the maturity value is $10,700 + $114 = $10,814.

A Company Borrows $10,700 from the Bank at 13% Interest