The maturity value of a 60-day,9 percent,$2,000 note receivable is

Question

Quizplus · Accepted Answer

To calculate the maturity value of a note receivable, we use the following formula:

Maturity value = Principal + (Principal x Interest rate x Time)

Here, the principal is $2,000, the interest rate is 9%, and the time is 60 days, which is 2/12 of a year. Substituting these values in the formula, we get:

Maturity value = $2,000 + ($2,000 x 0.09 x 2/12) 
Maturity value = $2,000 + $30 
Maturity value = $2,030

Therefore, the correct answer is C) $2,029.59.

The Maturity Value of a 60-Day,9 Percent,$2,000 Note Receivable Is