Question

On October 1, 2017, Parkin, Inc. made a loan to one of its customers. The customer signed a 6-month note for $110,000 at 14%. Calculate the maturity value of the note. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Answer 1

Maturity value = $117700

Step-by-step explanation:

given data

time = 6 month

amount = $110000

rate = 14%

to find out

maturity value of the note

solution

we know that maturity value is sum of principal and interest

so here principal is $110000

and interest is = principal × rate × time

interest = 110000 × 14% ×
`(6)/(12)`

interest = $7700

so

Maturity value = Principle + interest

Maturity value = 110000 + 7700

Maturity value = $117700