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

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

Quizplus · Accepted Answer

To calculate the maturity value of a note, we need to add the interest earned to the principal amount.

Principal amount = $50,000

Interest = (Principal x Rate x Time) / 360 
Time = 60 days 
Rate = 9%

Interest = (50,000 x 9% x 60) / 360 = $750

Maturity value = Principal + Interest = $50,000 + $750 = $50,750

Therefore, the correct answer is B.

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