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, we need to add the interest earned to the principal amount.

Interest earned on a 180-day note with $2,700 principal at 9% annual interest can be calculated as:

Interest = Principal x Rate x Time 
       = 2700 x 0.09 x 180/365 
       = $119.84

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

Maturity Value = Principal + Interest 
               = $2,700 + $119.84 
               = $2,819.84

Therefore, the answer is choice C ($2,819.84).

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