How do I calculate the Maturity Date of...?

Question

A $45,000 good with a 7.5% interest rate in 1 year note dated December 25th, 2006?
Can you tell me how to actually calculate it?
I know that the interest earned is 3375 and Maturity value is 48,375

Answer 1

The maturity date is date at upon which the note becomes due in full. In this case, it is 1-year after the contract date or Dec. 25th, 2007. The ineterst accrued during the 1 year is $3,375 yielding a maturity value of $48,375 due in full by Dec. 25th 2007. The repayment term may have the interest due monthly with the principal of $45k due in full after 1 year (or Dec. 25th 2007)