Question

The maturity value of a 90-day note for $4,000 with an interest rate of 10 percent is?

Answer 1

Answer:

maturity value = $4100

Explanation:

given data

time = 90 days = $\frac{90}{360}$

consider 360 days in a year

principal = $4000

interest rate = 10%

to find out

maturity value

solution

first we get here interest amount that is

interest = principal × rate × time   .........1

interest = $4000 × 10% × $\frac{90}{360}$

interest = $100

so maturity value will be

maturity value = principal + interest  .............2

maturity value = $4000 + $100

maturity value = $4100