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If the Interest Rate on a Note Is 10

question 40

Multiple Choice

If the interest rate on a note is 10.5% and the principal was $60,000, what is the maturity value of the note, if the term of the note is 7 months? (Round your final answer to the nearest dollar.)


Definitions:

No Further Deposits

A restriction placed on a bank account or investment that prevents additional funds from being added.

Compounded Annually

A method of calculating interest where the amount earned is added to the principal at the end of each year, so that the interest for the next year is calculated on the increased principal.

Interest

The charge for borrowing money or the return on investment for funds on deposit, expressed as a percentage of the principal.

Withdrawals

The act of taking out funds from an account, trust, or deposit.

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