When a note matures:

Question

Quizplus · Accepted Answer

When a note matures, the debtor or borrower must pay the creditor or lender the maturity value of the note, which includes the principal amount borrowed and the interest accrued on it. Therefore, option C is the correct choice. Option A is incorrect as it only mentions the principal amount and not the interest accrued. Option B is incorrect as it refers to paying only the interest due and not the principal amount. Option D is also incorrect as it mentions the creditor paying the debtor, whereas it is the debtor who has to pay the creditor when the note matures.

When a Note Matures