Question

A 60-day, 5% note for $18,000, dated May 1, is received from a customer on account. The maturity value of the note, assuming a 360-day year, is

Answer 1

the maturity value of the note is $18,150

Step-by-step explanation:

The computation of the maturity value is shown below:

= Amount of note + interest on note

= $18,000 + ($18,000 × 5% × 60 days ÷ 360 days)

= $18,000 + $150

= $18,150

Hence, the maturity value of the note is $18,150

We simply applied the above formula so that the correct value could come

And, the same is to be considered