Final answer:
The maturity value of a $202,800, 8%, 40-day note receivable dated July 3 is $204,603, calculated by adding the simple interest earned over 40 days to the principal.
Step-by-step explanation:
The student is asking about how to calculate the maturity value of a note receivable. A note receivable is a financial asset that represents a promise to receive a payment in the future, which usually includes principal and interest. To calculate the maturity value of this note receivable, we will use the formula for simple interest, which is given by Interest = Principal × Rate × Time, where time is in years. For a 40-day note, we must convert days to years by dividing by 365.
First, let's calculate the interest earned on the note:
Interest = $202,800 × 0.08 × (40/365) = $1,803
Then we add the interest to the principal to get the maturity value:
Maturity Value = Principal + Interest
Maturity Value = $202,800 + $1,803 = $204,603
Therefore, the maturity value of the $202,800, 8%, 40-day note receivable dated July 3 is $204,603.