How to Calculate the Maturity Date of a 90-Day Note

What is the maturity date of a 90-day note issued on April 10?

A) July 11. B) Jul 10. C) July 13. D) July 12. E) July 9.

Answer:

The maturity date of a 90-day note issued on April 10 is July 9.

When calculating the maturity date of a 90-day note, you need to add 90 days to the issuing date. In this case, the note was issued on April 10. To find the maturity date, we count 90 days from April 10.

April has 30 days, so after April 10, there are 20 days remaining in the month. May and June both have 31 days, totaling 62 days when added to April. Adding these to the remaining days in April amounts to 20 (April) + 31 (May) + 31 (June) = 82 days. This means we need 8 more days into July to reach a total of 90 days.

Since July begins immediately after June, we count 8 more days from July 1, leading us to the correct maturity date of July 9. Therefore, the answer is E) July 9.