Asked by The Gibson Family on May 13, 2024
Verified
Calculate the maturity value of a 120-day, $1,000 face value promissory note dated November 30, 2015, and earning interest at 4.75% simple interest.
Maturity Value
The sum owed to an investor at the conclusion of a fixed-duration investment, encompassing both the original amount invested and the accrued interest.
Promissory Note
A financial instrument constituting a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.
Simple Interest
Interest calculated solely on the principal amount of a loan or deposit, without compounding.
- Absorb the principles behind the computation of simple interest and the ultimate value of promissory notes at maturity.
Verified Answer
SK
Learning Objectives
- Absorb the principles behind the computation of simple interest and the ultimate value of promissory notes at maturity.