Magick,Inc.converted a $4,000 account receivable from Ronaldo to a 75-day,8% note receivable.The maturity value (assume a 360-day year)that will be due from Ronaldo in 75 days (round to nearest dollar)is:

Question

Quizplus · Accepted Answer

To calculate the maturity value of a note receivable, we first need to calculate the interest using the following formula:

Interest = Principal x Rate x Time

In this case, Principal is $4,000, Rate is 8%, and Time is 75/360 (as we assume a 360-day year).

Interest = $4,000 x 0.08 x 75/360 = $66.67

Next, we add the interest to the Principal to get the maturity value:

Maturity Value = Principal + Interest = $4,000 + $66.67 = $4,066.67

Rounding this to the nearest dollar, we get $4,067. Therefore, the answer is B, $4,067.