The maturity value of a $5,000, 9%, 60-day note receivable dated February 10th is

Question

Quizplus · Accepted Answer

To calculate the maturity value of a note receivable, you need to use the following formula:

Maturity value = Principal + Interest

Interest = (Principal x Rate x Time)/360

In this case, the principal is $5,000, the rate is 9%, and the time is 60 days. Using the formula, we get:

Interest = (5,000 x 0.09 x 60)/360 = $75

Maturity value = 5,000 + 75 = $5,075

Therefore, the correct answer is C, $5,075.

The Maturity Value of a $5,000, 9%, 60-Day Note Receivable