Using a 360-Day Year, the Maturity Value of a 90-Day

question 90

Multiple Choice

Using a 360-day year, the maturity value of a 90-day note for $42,000 at 8% annual interest is:

• A)$45,360.00.
• B)$3,360.00.
• C)$42,840.00.
• D)$42,000.00.

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Definitions:

Account Balance

The amount of money present in a financial account at any moment, which can reflect credits, debits, and pending transactions.

Debit Side

The debit side refers to the left side of an accounting ledger where debits are recorded, often signifying an increase in assets or expense accounts, or a decrease in liability, equity, or revenue accounts.

Credit Side

The right side of an account ledger, where increases in liabilities, equity, and revenue or decreases in assets are recorded.

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is expected to provide future benefit.