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NeTakaya
3 years ago
5

On September 4, Nita Darmati signed a $5,350 promissory note to purchase furniture for her home office. The note had a simple in

terest rate of 8.5% for 120 days. What was the maturity value of the note? Round to the nearest cent. Assume ordinary interest.
Mathematics
1 answer:
snow_lady [41]3 years ago
3 0
The maturity value is the principal value together with interest due.
.. mv = P +Prt
.. = 5350*(1 +0.085*120/360) . . . . . . year is 360 days for "ordinary interest"
.. ≈ 5501.58

The maturity value is $5501.58.
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