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mel-nik [20]
3 years ago
15

On August​ 14, Park Avenue Bank lent​ $210,000 to City Coffee Shop on a 75​ day, 4% note. What is the maturity value of the​ not

e? ​ (Use a 365minusday year. Do not round intermediate​ calculations, and round your final answer to the nearest​ dollar.)
A. $218,400
B. $211,726
C. $211,750
D. $210,000
Business
1 answer:
Anna007 [38]3 years ago
4 0

Answer:

B

Explanation:

Interest - (principal x time x rate) divided by 100

where time is  expressed in days relative to 365 days in a year and rate expressed as percentage. Principal is the sum lent out

Interest = <u> 210,000 x 75 x 4</u>

                    100 x 365

               = $ 1 726

add the interest to the principal to get the maturity value = 1 726 + 210,000= $211,726

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