A company borrowed $10,000 by signing a 180-day promissory note at 9%.The maturity value of the note is: (Use 360 days a year.)
A)$10,450
B)$10,900
C)$10,075
D)$11,800
E)$10,300

Question

Quizplus · Accepted Answer

The maturity value of the note can be calculated using the formula: Maturity Value = Principal + (Principal * Rate * Time), where Time is in years. For a $10,000 note at 9% for 180 days (or 0.5 years when considering a 360-day year), the interest is $10,000 * 0.09 * 0.5 = $450. Therefore, the maturity value is $10,000 + $450 = $10,450.

A Company Borrowed $10,000 by Signing a 180-Day Promissory Note