Question

Calculate maturity value for the interest-bearing note using

ordinary interest given: $42,000 79 days 13% Your answer needs to
be in $X,XXX.XX format (using the dollar sign, comma, and
cents)

Answer 1

To calculate the maturity value for the interest-bearing note, use the formula Maturity Value = Principal + (Principal x Interest Rate x Time). Using the given information, the maturity value is $47,409.12.

Step-by-step explanation:

To calculate the maturity value for the interest-bearing note, you can use the formula:

Maturity Value = Principal + (Principal x Interest Rate x Time)

Using the given information: Principal = $42,000, Interest Rate = 13% (converted to 0.13), and Time = 79 days (converted to years by dividing by 365), you can plug in these values:

Maturity Value = $42,000 + ($42,000 x 0.13 x (79/365))

Simplifying the calculation:

Maturity Value = $42,000 + ($42,000 x 0.13 x 0.2164)

Maturity Value = $42,000 + ($5,409.12)

Maturity Value = $47,409.12