The maturity value of a 60-day,9 percent,$4,000 note receivable is
A)$3,940.66.
B)$3,641.78.
C)$4,059.18
D)$4,360.24.

Question

Quizplus · Accepted Answer

Using the simple interest formula:

Interest = Principal x Rate x Time
Interest = $4,000 x 0.09 x 60/360 (since 60 days is 1/6th of a year)
Interest = $60

Maturity value = Principal + Interest
Maturity value = $4,000 + $60
Maturity value = $4,060

Therefore, the correct choice is C) $4,059.18 (since the answer is rounded to the nearest cent).

The Maturity Value of a 60-Day,9 Percent,$4,000 Note Receivable Is