When a note matures:
A)the debtor must pay the creditor only the interest on the note.
B)the creditor must pay the debtor only the interest on the note.
C)the debtor must pay the creditor the maturity value of the note.
D)the creditor must pay the debtor the maturity value of the note.

Question

Quizplus · Accepted Answer

When a note matures, the debtor must pay the creditor the maturity value of the note, which includes both the principal amount borrowed and any accrued interest. This is the amount that was originally agreed upon when the note was first issued. Therefore, the correct choice is C.

When a Note Matures