A businesswoman signs a 120-day, 9% simple interest note of $40,000 on May 25. Find the maturity date of the note and the maturity value of the note using ordinary method.
Using "ordinary method", I assume, means using the simple interest formula.
$\displaystyle A=P+P\cdot R \cdot T$
$\displaystyle A=40000+40000\cdot .09 \cdot \frac{1}{3}$
$\displaystyle \boxed{A=\$41,200}$ Value of the note at maturity
The maturity date is 120 days from May 25. If you include May 25,
7 days - May 25 to May 31
30 days - June
31 days - July
31 days - August
21 days - September
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120 days have been reached on September 21.