Final answer:
The maturity value of a $25,000, 12%, 3-month note receivable dated March 1 is calculated using the simple interest formula. The interest amounts to $750, making the total maturity value $25,750. The correct answer is A. $25,750.
Step-by-step explanation:
The maturity value of a note receivable includes the principal amount plus the interest earned over the term of the note. To calculate the maturity value of a $25,000, 12%, 3-month note receivable dated March 1, you can use the simple interest formula:
Interest = Principal × Rate × Time
Here, Time is in years, so for a 3-month period, it would be 3/12 or 0.25 years. Thus, the interest can be calculated as:
Interest = $25,000 × 12% × 0.25
Interest = $750
Adding the interest to the principal gives us the maturity value:
Maturity Value = Principal + Interest
Maturity Value = $25,000 + $750
Maturity Value = $25,750
Therefore, the correct answer is A. $25,750.