On October 1, 2018, Parker, Inc. made a loan to one of its customers. The customer signed a 9-month note for $110,000 at 14%. Calculate the maturity value of the note. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

To calculate the maturity value, we need to use the formula: maturity value = principal + (principal x rate x time)
In this case, the principal is $110,000, the rate is 14%, and the time is 9/12 (since it's a 9-month note).

maturity value = $110,000 + ($110,000 x 0.14 x 9/12)
maturity value = $121,550

So the answer is A) $121,550.