A 90-day note issued on April 10 matures on:
A. July 9.
B. July 10.
C. July 11.
D. July 12.
E. July 13.
The correct answer and explanation is :
Correct Answer: C. July 11.
Explanation (Approximately 300 Words):
When calculating the maturity date of a 90-day note, the key is to add 90 calendar days to the issue date, not including the issue date itself, but including the final day. Let’s go through the steps to determine the maturity date of a 90-day note issued on April 10.
Step-by-step Calculation:
- Start Date (Not Counted): April 10 – this is the issue date, so we start counting from April 11.
- Days Remaining in April: April has 30 days. From April 11 to April 30 = 20 days.
- Days in May: May has 31 days = 31 days.
- Days Needed in June/July:
- Total so far = 20 (April) + 31 (May) = 51 days
- 90 – 51 = 39 days remaining to be added in June/July.
- June has 30 days, so we can count all of June = 30 days
- 39 – 30 = 9 days to go in July
- So, the note matures on the 9th day of July, after June 30, starting from July 1.
- Counting 9 days into July → July 1 to July 9 = 9 days
- But this only brings us to July 9, which is day 89 (since April 11 is day 1).
- The 90th day is July 10, but that’s counted after April 10. Since we exclude the start date (April 10), the true 90th day falls on July 11.
Final Note:
The key point is not to count the issue date, but include the maturity date. So, starting from April 11, 90 full days ends on July 11.
Answer: C. July 11 ✅