If the interest rate on a note is 12.5% and the principal was $50,000,what is the maturity value of the note,if the term of the note is 7 months? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated using the formula: Maturity Value = Principal + Interest. The interest is calculated as Principal x Rate x Time. Here, the interest is $50,000 x 12.5% x (7/12) = $3,645.83. Adding this to the principal gives $53,645.83, which rounds to $53,646.

If the Interest Rate on a Note Is 12