If the interest rate on a note is 10.5% and the principal was $60,000, what is the maturity value of the note, if the term of the note is 7 months? (Round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The maturity value of the note is the principal plus the interest. The interest is calculated as follows:Interest = Principal x Interest rate x TimeInterest = $60,000 x 10.5% x 7/12Interest = $3,675The maturity value is:Maturity value = Principal + InterestMaturity value = $60,000 + $3,675Maturity value = $63,675

If the Interest Rate on a Note Is 10