Answer:
The maturity value of the note is $132,000
Explanation:
A Loan note is a promissory note that is signed to make a promise of an amount of Loan taken by someone that to be returned after a specific time with interest value at a defined in the loan note.
The maturity value of the loan note can be calculated as follow
Face value = $120,000
Interest rate = 10%
Time period = 1 years
Use following formula to calculate the maturity value of the loan note.
Maturity value = Face value x ( 1 + interest rate )^ numbers of years
Placing values in the formula
Maturity value = $120,000 x ( 1 + 10% )^1
Maturity value = $132,000
