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 note? (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

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 = 210,000 x 75 x 4

100 x 365

= $ 1 726

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