The Maturity Value of a $50,000, 12%, 3-Month Note Receivable

question 62

Multiple Choice

The maturity value of a $50,000, 12%, 3-month note receivable is

• A)$51,500.
• B)$50,600.
• C)$56,000.
• D)$50,500.

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Definitions:

Financial Position

A snapshot of the resources, obligations, and the net worth of an individual or organization at a specific point in time.

Nominal Rate

The stated interest rate of a loan or investment, not taking into account the effect of compounding.

Semiannually

Referring to an occurrence or event happening twice a year.

Maturity Date

The particular date when the last payment of a loan, bond, or another financial instrument must be made.