Topic: Budgeting

Scenario: A money market instrument purchased by Woods Household Supplies with a face value of $500,000 will mature on October 20, 2016. In order to meet the financial obligations of the business, management has decided to liquidate the investment upon maturity. On that date quarterly interest computed at a rate of 6% per annum is also expected to be collected.

Question: What is the total amount to be paid in October 2016? Show all working.