The maturity value of a $60000 6% 3-month note receivable is
A) $61200.
B) $60360.
C) $60900.
D) $63600.

Question

Quizplus · Accepted Answer

The formula for calculating the maturity value of a note receivable is:

Maturity value = Principal + Interest

where Interest = Principal x Rate x Time

In this case, the principal is $60000, the rate is 6%, and the time is 3 months.

First, we need to calculate the interest:

Interest = $60000 x 6% x (3/12) = $900

Next, we can calculate the maturity value:

Maturity value = $60000 + $900 = $60900

Therefore, the best choice is C.

The Maturity Value of a $60000 6% 3-Month Note Receivable