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24 February, 01:56

On june 8, alton co. issued an $90,000, 6%, 120-day note payable to seller co. assuming a 360-day year for your calculations, what is the maturity value of the note?

a. $90,450

b. $90,000

c. $91,800

d. $95,400

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Answers (1)
  1. 24 February, 03:18
    0
    Maturity Value = Principal x (1 + Rate x Time)

    Here is:

    Principal = $90,000

    Rate = 6% =.06

    Time = 120 / 360

    Maturity value = $90,000 x (1 +.06 x 120/360) =

    = $90,000 x (1 +.02) =

    = $90,000 x 1.02 = $91,800

    Answer: c. $91,800
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