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Math Help - Maturity Value

  1. #1
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    Maturity Value

    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.
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  2. #2
    A riddle wrapped in an enigma
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    Quote Originally Posted by magentarita View Post
    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.

    A=P+P\cdot R \cdot T

    A=40000+40000\cdot .09 \cdot \frac{1}{3}

    \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
    ----------------------
    120 days have been reached on September 21.
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  3. #3
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    ok.....

    Quote Originally Posted by masters View Post
    Using "ordinary method", I assume, means using the simple interest formula.

    A=P+P\cdot R \cdot T

    A=40000+40000\cdot .09 \cdot \frac{1}{3}

    \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
    ----------------------
    120 days have been reached on September 21.
    Words like "maturity value" and "ordinary method" blew me away.
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