On August 14,First Avenue Bank lent $250,000 to City Cafe on a 75 day,4% note.What is the maturity date of the note? (Use a 360-day year and round answers to the nearest dollar. )

Name: On August 14,First Avenue Bank lent $250,000 to City Cafe on a 75 day,4% note.What is the maturity date of the note? (Use a 360-day year and round answers to the nearest dollar. )
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

B)Maturity value = Principal + Interest
Maturity value = $250,000 + $2,083 ($250,000 × 0.04 × 75 / 360)
Maturity value = $252,083

On August 14,First Avenue Bank Lent $250,000 to City Cafe