Asked by Anganathi Ngodwane on May 20, 2024
Verified
Calculate the maturity value of a $1,000 face value, 5-month promissory note dated December 31, 2015, and bearing interest at 9.5% simple interest.
Promissory Note
A financial instrument involving a written promise by one party to pay another a definite sum of money either on demand or at a specified future date.
Simple Interest
Interest calculated only on the original principal, not on the accumulated interest from previous periods.
Maturity Value
The amount payable to an investor at the end of a debt instrument's life, including both the principal and the interest.
- Gain an understanding of how simple interest is applied in financial instruments.
Verified Answer
Learning Objectives
- Gain an understanding of how simple interest is applied in financial instruments.
Related questions
A $100,000, 90-Day Commercial Paper Certificate Issued by Wells Fargo ...
A $100,000, 90-Day Commercial Paper Certificate Issued by Bell Canada ...
A Money Market Mutual Fund Purchased $1 Million Face Value ...
Calculate the Price on Its Issue Date of $100,000 Face ...
How Much Must Be Placed in a 5-Month Term Deposit ...