43 The maturity value of a 40000 9 40day note receivable dat

43. The maturity value of a $40,000, 9%, 40-day note receivable dated July 3 is (use a 360 day year): a. $40,000. b. $41,800. c. $43,600 d. $40,400

Solution

Ans) Note value = $40,000, No of days = 40

Interest rate = 9%

Interest value = $40,000 *9%*(40days/360days) = $400

So the maturity value of the note is = $40,000 + $400 = $40,400

Ans is option d.