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The total amount of the note and interest due on the maturity date of a $6,000, 60-day 4%, note receivable is: (use 360 days a year.) multiple choice

a. $6,000.
b. $6,240.
c. $5,760.
d. $6,040.
e. $5,960.

1 Answer

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Final answer:

The total amount due on the maturity date for a $6,000, 60-day note at 4% interest using a 360-day year is $6,040, which is the sum of the principal and the accrued simple interest.

Step-by-step explanation:

The student's question is about calculating the total amount of a note receivable with given terms. In this case, the note's face value is $6,000 with an interest rate of 4% for a 60-day period, using a year of 360 days.

To find the total amount due at maturity, including interest, we use the formula for simple interest: Interest = Principal × Rate × Time.

Here, Principal is $6,000, the Rate is 4%, and the Time is 60/360 (since we're using a 360-day year).

The interest can be calculated as follows:
Interest = $6,000 × 0.04 × (60/360) = $6,000 × 0.04 × (1/6) = $6,000 × 0.006667 = $40.

Therefore, the total amount due on the maturity date is:
Total amount = Principal + Interest
Total amount = $6,000 + $40 = $6,040.

The correct answer to the student's question is option D, $6,040.

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