Certainly! Let's walk through the steps to determine the maturity value of an interest-bearing note.
### Explanation:
1. Understanding the Principal: The principal is the original amount of money borrowed or invested, before any interest is added.
2. Understanding Interest-Bearing Notes: An interest-bearing note accumulates interest over a period of time. This means that over time, the borrower pays back not just the principal amount but also the interest that has accumulated.
3. Maturity Value: The maturity value of the note is the total amount due at the end of the note's term. It includes both the principal amount and the interest that has accrued over the period.
### Calculation:
- Principal + proceeds: This option combines principal with some additional unspecified proceeds. It is not a standard term for calculating maturity value.
- Principal - bank discount: This involves deducting a discount from the principal, which isn’t how maturity value is typically calculated.
- Principal + interest: This correctly describes adding the accrued interest to the principal amount, giving you the total amount that will be paid at the note's maturity.
- None of these: This implies that there isn't an accurate description among the options, which is not true here as one of the options is correct.
- Principal interest: This term is incorrectly formatted and doesn’t represent the correct way to describe the maturity value calculation.
### Conclusion:
The maturity value of an interest-bearing note is the sum of the original principal amount and the accrued interest over the period. Therefore, the correct answer is:
Principal + interest.
Thus, based on the options provided, the correct choice is:
Option 3: Principal + interest.
