Question

A 90-day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is:___________.

a. $10,000
b. $9,550
c. $10,300
d. $450

Answer 1

c. $10,300

Step-by-step explanation:

The computation of the maturity value of the note is shown below:

Maturity value of the note = Face value + interest for 90 days

= $10,000 + $10,000 × 12% × (90 days ÷ 360 days)

= $10,000 + $300

= $10,300

We simply added the face value and the interest for 90 days so that the maturity value would come

Hence, the correct option is c. $103,00

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

And, the same is to be considered