SOLUTION
Notes are often a key component of how a business finances its operations. In general note are a short-term commercial financing.
Write out the information given
[tex]\begin{gathered} \text{ Principal=\$80,000} \\ \text{ Rate=10.5 \%}=\frac{10.5}{100}=0.105 \\ \\ \text{Time}=\frac{180}{360}=0.5 \end{gathered}[/tex]The maturity value formula is given by
[tex]\text{maturity value= Principal(1+rate x time)}[/tex]Substitute, tyhe value into the formula, we have
[tex]\text{Maturity value =80000(1+(0.5x0.105))}[/tex]Then
[tex]\begin{gathered} \text{Maturity value=80 000(1+0.0525)} \\ \text{Maturity value=80 000(1.0525)} \end{gathered}[/tex]Hence
[tex]\text{Maturity value=}84\text{ 200}[/tex]Hence
The maturity value on the note will be $84 200
Answer: $84 200
