What is the maturity value of a 6-month, 11% note for $60,000? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The formula to calculate the maturity value of a note is:

Maturity value = Principal + (Principal x Rate x Time)

Where:
Principal = $60,000
Rate = 11% (or 0.11 as a decimal)
Time = 6 months (or 0.5 years)

Maturity value = $60,000 + ($60,000 x 0.11 x 0.5) = $63,300

Therefore, the maturity value of the note is $63,300. Option C is the correct answer.

What Is the Maturity Value of a 6-Month, 11% Note