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What is the maturity value of a $25,000, 12%, 3-month note receivable dated March 1?

User Mike Graf
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Final answer:

The maturity value of a $25,000, 12%, 3-month note receivable is $25,750.

Step-by-step explanation:

The maturity value of a $25,000, 12%, 3-month note receivable dated March 1 can be calculated using the formula for simple interest:



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



In this case, the principal is $25,000, the interest rate is 12% (or 0.12 as a decimal), and the time is 3 months (or 0.25 years).



Therefore, the maturity value is:



Maturity Value = $25,000 + ($25,000 * 0.12 * 0.25) = $25,750

User Patriot
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