On june 8, alton co. issued an $90,000, 6%, 120-day note payable to seller co. assuming a 360-day year for your calculations, what is the maturity value of the note?
a. $90,450
b. $90,000
c. $91,800
d. $95,400
Maturity Value = Principal x ( 1 + Rate x Time ) Here is: Principal = $90,000 Rate = 6% = .06 Time = 120 / 360 Maturity value = $90,000 x ( 1 + .06 x 120/360 ) = = $90,000 x ( 1 + .02 ) = = $90,000 x 1.02 = $91,800 Answer: c. $91,800
