Duerr company makes a $60,000,60-day,12% cash loan to Ryan Co.The maturity value of the loan is: (Use 360 days a year.)

Question

Quizplus · Accepted Answer

The maturity value of the loan can be calculated using the simple interest formula:
Maturity Value = Principal + (Principal x Rate x Time)
where Principal = $60,000, Rate = 12%, and Time = 60/360 years (since we're using a 360-day year).
Maturity Value = $60,000 + ($60,000 x 0.12 x (60/360))
Maturity Value = $60,000 + $1,200
Maturity Value = $61,200

Duerr Company Makes a $60,000,60-Day,12% Cash Loan to Ryan Co