Maruti Motors, Inc , receives a one year note that carries a 12 percent annual interest rate on $3,000 for the sale of a used car Compute the maturity value under each of the following assumptions (1) Simple interest is charged (2) The interest is compounded semiannually (3) The interest is compoun...

1 Simple interest 3000 12 100 36000 Principal 300000 Maturity value 3360 ...

Maruti Motors, Inc., receives a one-year note that carries a 12 percent annual interest rate on $3,000

Question:

Maruti Motors, Inc., receives a one-year note that carries a 12 percent annual interest rate on $3,000 for the sale of a used car. Compute the value under each of the following assumptions:
(1) Simple interest is charged.
(2) The interest is compounded semiannually.
(3) The interest is compounded quarterly. (Round to the nearest cent.)

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...