Since the principal was paid on Dec 15, the exact # of days is from Jun 5 to Dec 14. Note that there are 30 days in June, 31 days in July, 31 days in Aug, 30 days in Sept, 31 days in Oct, and 30 days in Nov.
So, June 5 to July 4 = 30 days, July 5 to Aug 4 =
31 days, Aug 5 to Sept 4 = 31 days, Sept 5 to Oct 4 =
30 days, Oct 5 to Nov 4 = 31 days, Nov 5 to Dec 4 =
30 days, and Dec 5 to Dec 15 =
10 days.
Thus the exact time in days is: 30+31+31+30+31+30+10 =
193 days
The interest is calculated using the following formula:
(Principal)*(Interest Rate)*(Time in days/365 days per year)
= (655)*(0.09)*(193/365) = 31.170821917808 ≈ 31.17
Thus, the interest is $ 31.17
The Maturity Value = Principal + Interest = 655 + 31.17 = 686.17
Thus, the Maturity Value is $ 686.17
10/19/2012

Tamara J.
Comments
Scott, it looks like it should be 193 days, not 183, but otherwise your answer looks good. I checked this using your excel trick, which is actually pretty handy :) I noticed it because I was doing this earlier, and added up the dates by hand to get 194 days (but I included the 15th which I probably shouldn't have...).
so the interest: (193/365) * 655 * (0.09) = 31.17
and the maturity value: 655 + 31.17 = 686.17
Absolutely right, I had entered June 15th to December 15th by mistake. Thanks!
hi, mr. scott this jackie from st.louis.... can you please help with matuerity value im lost thanks.... the question has been answers but Im not understanding plz put your input......
Comment