Using a 365-day year, the maturity value of a 55-day, 6% note for $22,000 rounded to the nearest cent is: (Do not round any intermediary calculations. Round your final answer to the nearest cent.)

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated by adding the interest earned to the principal amount. Interest can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $22,000, Rate = 6% (or 0.06 as a decimal), and Time = 55/365 years. So, Interest = $22,000 × 0.06 × (55/365) = $198.90. Therefore, the maturity value = Principal + Interest = $22,000 + $198.90 = $22,198.90.

Using a 365-Day Year, the Maturity Value of a 55-Day