A company receives a 6.2%,60-day note for $9,650.The total amount of cash due on the maturity date is:
A)$598.30.
B)$99.72.
C)$9,650.00.
D)$10,248.30.
E)$9,749.72.

Question

Quizplus · Accepted Answer

To find the total amount of cash due on the maturity date, we need to add the interest earned to the principal amount.

The interest earned can be calculated using the formula: 
Interest = Principal x Rate x Time
where Rate is the annual interest rate and Time is the fraction of the year the note is outstanding.

In this case, Rate = 6.2% and Time = 60/365 (since it is a 60-day note).

Interest = $9,650 x 0.062 x 60/365 = $99.72

Adding this to the principal amount, we get: 
Total amount due = $9,650 + $99.72 = $9,749.72

Therefore, the best choice is E, $9,749.72.

A Company Receives a 6