Calculate the maturity value for an interest-bearing note of $28,500 for 118 days at 8%.
P = Po + Po*r*t = 28,500 + 28,500*(0.08/360)*118 =
To calculate the maturity value of an interest-bearing note, we will need to use the formula:
Maturity Value = Principal + (Principal * Interest Rate * Time)
Given:
Principal (P) = $28,500
Interest Rate (R) = 8% (0.08 as a decimal)
Time (t) = 118 days
Let's plug in these values into the equation:
Maturity Value = Principal + (Principal * Interest Rate * Time)
= $28,500 + ($28,500 * 0.08 * 118/365)
= $28,500 + ($28,500 * 0.08 * 0.323)
= $28,500 + ($734.4)
= $29,234.4
Therefore, the maturity value for an interest-bearing note of $28,500 for 118 days at 8% is $29,234.4.
To calculate the maturity value of an interest-bearing note, you need to know the principal amount, the interest rate, and the time period in days. The formula to calculate the maturity value is:
Maturity Value = Principal + (Principal * Interest Rate * Time / 365)
Let's plug in the given values into the formula:
Principal = $28,500
Interest Rate = 8%
Time Period = 118 days
Converting the interest rate to a decimal: 8% = 8/100 = 0.08
Using the formula:
Maturity Value = $28,500 + ($28,500 * 0.08 * 118 / 365)
Calculating the percentage of the time period:
(118 / 365) ≈ 0.323
Calculating the maturity value:
Maturity Value = $28,500 + ($28,500 * 0.08 * 0.323)
= $28,500 + ($684)
Maturity Value = $29,184
Therefore, the maturity value for an interest-bearing note of $28,500 for 118 days at 8% is $29,184.