Assuming a 360-day year, the maturity value of an $8,000, 9%, 60-day note receivable dated February 10th is

Question

Quizplus · Accepted Answer

First, we need to calculate the interest on the note using the following formula:

Interest = Principal x Rate x Time
Interest = $8,000 x 0.09 x 60/360
Interest = $120

Then, we can calculate the maturity value (total amount due at maturity) by adding the principal and the interest:

Maturity Value = Principal + Interest
Maturity Value = $8,000 + $120
Maturity Value = $8,120

Therefore, the correct answer is A) $8,120.

Assuming a 360-Day Year, the Maturity Value of an $8,000