Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (rounded to the nearest cent):

Question

Quizplus · Accepted Answer

To find the maturity value of a 180-day note with an interest rate of 9%, we use the simple interest formula:

Interest = Principal x Rate x Time

= $2,700 x 0.09 x (180/365)

= $119.84 (rounded to the nearest cent)

Then, we add the interest to the principal to find the maturity value:

Maturity Value = Principal + Interest

= $2,700 + $119.84

= $2,819.84 (rounded to the nearest cent)

Therefore, the correct answer is C.

Using a 365-Day Year, the Maturity Value of a 180-Day