1. **State the problem:** Lim issues a promissory note on 15 March 2026 for 5000 at 6% simple interest per annum with a term of 120 days. We need to find (a) the maturity date and (b) the maturity value. 2. **Find the maturity date:** The maturity date is the date when the note is due, which is 120 days after 15 March 2026. - Starting from 15 March 2026, add 120 days. - March has 31 days, so days remaining in March after 15 March = 31 - 15 = 16 days. - Subtract these 16 days from 120: 120 - 16 = 104 days left. - April has 30 days, subtract 30: 104 - 30 = 74 days left. - May has 31 days, subtract 31: 74 - 31 = 43 days left. - June has 30 days, subtract 30: 43 - 30 = 13 days left. - So, 13 days into July. Therefore, the maturity date is 13 July 2026. 3. **Calculate the maturity value:** - Formula for simple interest: $$I = P \times r \times t$$ - Where $P = 5000$, $r = 6\% = 0.06$ per annum, and $t$ is time in years. - Since the term is 120 days, convert to years: $$t = \frac{120}{365}$$ Calculate interest: $$I = 5000 \times 0.06 \times \frac{120}{365}$$ Simplify: $$I = 5000 \times 0.06 \times 0.32877 = 5000 \times 0.019726 = 98.63$$ (rounded to two decimals) 4. **Calculate maturity value:** Maturity value = Principal + Interest $$= 5000 + 98.63 = 5098.63$$ **Final answers:** (a) Maturity date is 13 July 2026. (b) Maturity value is 5098.63.