On December 12, Lowell Corporation accepted a $160,000, 120-day, non-interest-bearing note from Able.com. What is the maturity value of the note? Maturity value
On December 12, Lowell Corporation accepted a $160,000, 120-day, non-interest-bearing note from Able.com. What is the maturity value of the note? Maturity value
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
What maturity value of the note?
![On December 12, Lowell Corporation accepted a $160,000, 120-day, non-interest-bearing note from Able.com. What is the maturity value of the note?
Maturity value: [ ]
**Explanation:**
This is a word problem related to finance. It presents a scenario where Lowell Corporation receives a note from Able.com. The note is for $160,000 and has a term of 120 days, but it does not bear interest. The task is to determine the maturity value of the note, which is effectively the principal amount since no interest is accrued.
There are no graphs or diagrams accompanying the text. The text box provided is intended for inputting the answer.
**Note for Students:**
A non-interest-bearing note means the maturity value is the same as the principal amount. So, the maturity value would be $160,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F106a256f-1350-4c20-89d9-defeb05f2429%2Ff93f9664-9795-4f9e-a853-7301707668ab%2Faf6txun.jpeg&w=3840&q=75)
Transcribed Image Text:On December 12, Lowell Corporation accepted a $160,000, 120-day, non-interest-bearing note from Able.com. What is the maturity value of the note?
Maturity value: [ ]
**Explanation:**
This is a word problem related to finance. It presents a scenario where Lowell Corporation receives a note from Able.com. The note is for $160,000 and has a term of 120 days, but it does not bear interest. The task is to determine the maturity value of the note, which is effectively the principal amount since no interest is accrued.
There are no graphs or diagrams accompanying the text. The text box provided is intended for inputting the answer.
**Note for Students:**
A non-interest-bearing note means the maturity value is the same as the principal amount. So, the maturity value would be $160,000.
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