Question

Central Building Company borrowed $15,804 on a 280-day simple interest note to expand their business. The note carried an interest rate of 7.0%. Find the maturity value of the note.

a. $15,888.87
b. $14,943.56
c. $16,664.44
d. $16,676.56

Answer 1

Answer: c. $16,664.44

Step-by-step explanation:

The interest amount is = Amount * Interest * 280/360

= 15,804 * 7% * 280/360 days

= $860.44

Add that to the amount borrowed;

= 15,804 + 860.44

= $16,664.44