Final answer:
The maturity value of a $219,600, 8%, 40-day note receivable is calculated as the principal plus the accrued interest for the period. By applying the formula for interest and adding it to the principal, we find that the maturity value is $221,552.
Step-by-step explanation:
The correct option : b
Maturity value of a note refers to the amount that will be received at the end of the loan period, which includes the principal and the accrued interest. To calculate this value, we use the formula Maturity Value = Principal + (Principal × Annual Interest Rate × (Days Outstanding / 365)).
Given that the principal is $219,600, the annual interest rate is 8%, and the note is for a 40-day period, we can compute the interest using the formula Interest = $219,600 × 0.08 × (40 / 365), which gives us $1,952. The maturity value is then calculated by adding the interest to the principal: Maturity Value = $219,600 + $1,952 = $221,552.
Therefore, the correct option is (b) $221,552, representing the total amount due at the maturity of the note.