A company borrowed $10,000 by signing a 180-day promissory note at 9%.The maturity value of the note is:
A)$10,450
B)$10,900
C)$10,075
D)$11,800
E)$10,300

Name: A company borrowed $10,000 by signing a 180-day promissory note at 9%.The maturity value of the note is: A)$10,450 B)$10,900 C)$10,075 D)$11,800 E)$10,300
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Quizplus · Accepted Answer

The maturity value is calculated as the principal plus interest. Interest = Principal x Rate x Time = $10,000 x 0.09 x (180/360) = $450. Maturity value = $10,000 + $450 = $10,450.

A Company Borrowed $10,000 by Signing a 180-Day Promissory Note