Final answer:
To calculate the maturity value of a 60-day note receivable at 5% interest, determine the interest by multiplying the principal by the daily interest rate and the number of days, then add this interest to the principal.
Step-by-step explanation:
The student is asking how to calculate the maturity value of a note receivable. To determine this, first calculate the interest earned on the $6,000 at 5% over 60 days, and then add this to the principal to get the maturity value. Here's the step-by-step calculation:
- Calculate the daily interest rate: 5% annual rate means 0.05 / 360 (assuming a 360-day year) per day.
- Multiply this daily rate by the number of days the note is held: (0.05 / 360) * 60 days.
- Apply this rate to the $6,000 principal to find the total interest: $6,000 * (0.05 / 360) * 60.
- Add the interest earned to the principal to find the maturity value: $6,000 + ($6,000 * (0.05 / 360) * 60).
Performing these calculations will give you the maturity value of the note receivable.