On July 7, University Bank lent $560,000 to Jazz Music Shop on a 60 day, 7% note. What is the maturity value of the note? (Use a 360-day year and round answers to the nearest dollar.)

Question

Quizplus · Accepted Answer

The maturity value of the note is calculated by adding the interest to the principal. The interest is calculated as: Principal x Rate x Time = $560,000 x 0.07 x (60/360) = $6,533.33. Adding this to the principal gives $560,000 + $6,533 = $566,533.

On July 7, University Bank Lent $560,000 to Jazz Music