Using a 365-day year, the maturity value of a 180-day note for $3,000 at 9% annual interest is: (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The first step is to calculate the interest earned on the note:

Interest = Principal x Rate x Time
Interest = $3,000 x 9% x 180/365
Interest = $131.51

The maturity value of the note will be the sum of the principal and the interest earned:

Maturity Value = Principal + Interest
Maturity Value = $3,000 + $131.51
Maturity Value = $3,131.51

Therefore, the answer is choice C.

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