The maturity value of a $50,000, 9%, 60-day note receivable dated July 3 is

Question

Quizplus · Accepted Answer

To calculate the maturity value of the note receivable, we need to use the formula:

Maturity value = Principal + (Principal x Interest rate x Time)

Where:

Principal = $50,000
Interest rate = 9% or 0.09 (per annum)
Time = 60/360 (since the note is due in 60 days and we need to express it in terms of a fraction of a year)

Maturity value = $50,000 + ($50,000 x 0.09 x 60/360)
Maturity value = $50,000 + $750
Maturity value = $50,750

Therefore, the best choice is B, which is $50,750.

The Maturity Value of a $50,000, 9%, 60-Day Note Receivable