Question

What is the maturity value of a $ 63,928, 7%, 136 day note receivable?

Answer 1

The maturity value of the $63,928, 7%, 136-day note receivable is approximately $65,576.44.

To calculate the maturity value of a note receivable, you can use the formula:

Maturity Value=Principal+(Principal×Interest Rate×Time in days/360)

In this case:

Principal = $63,928

Interest Rate = 7% or 0.07 (in decimal form)

Time in days = 136 days

`\text{Maturity Value} = 63,928 + (63,928 * 0.07 * (136)/(360))\\\\\text{Maturity Value} = 63,928 + (63,928 * 0.07 * 0.37777778)\\\text{Maturity Value} = 63,928 + 1,648.4444\\\text{Maturity Value} \approx 65,576.44`

Therefore, the maturity value of the $63,928, 7%, 136-day note receivable is approximately $65,576.44.