The Maturity Value of a 6 Month, 7% Note for $45,000

question 102

Multiple Choice

The maturity value of a 6 month, 7% note for $45,000, dated May 12 is: (Round your final answer to the nearest dollar.)

• A)$1575.
• B)$45,000.
• C)$48,150.
• D)$46,575.

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Definitions:

Tax Deductible

Expenses or investments that can be subtracted from gross income to reduce taxable income, ultimately lowering tax liabilities.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.

Income Tax Expense

Income tax expense represents the amount of money a company or individual owes to the government based on their taxable income.

Deferred Tax Liability

A tax obligation that a company owes in the future due to temporary differences between its taxable income and its accounting earnings.