Determine the due date and the amount of interest due at maturity on the following notes: Date of note A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note Due date. Interest (A) __________ $ (B) ___________ $ (C) ___________ $ (D) ____________ $ (E) ___________ $
Determine the due date and the amount of interest due at maturity on the following notes: Date of note A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note Due date. Interest (A) __________ $ (B) ___________ $ (C) ___________ $ (D) ____________ $ (E) ___________ $
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Author:Carl Warren, James M. Reeve, Jonathan Duchac
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Chapter9: Receivables
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Determine due date and interest on notes
Determine the due date and the amount of interest due at maturity on the following notes:
Date of note
A. January 10*
B . March 19
C. June 5
D. September 8
E. November 20
* February 2016 has 28 days
Face amount
A.$40,000
B. 18,000
C. 90,000
D. 36,000
E. $27,000
Interest rate
A. 5%
B. 8%
C. 7%
D. 3%
E. 4%
Term of note
A. 90 days
B. 180 days
C. 30 days
D. 90 days
E. 60 days
Assume 360 days in a year one commuting the interest.
Note Due date. Interest
(A) __________ $
(B) ___________ $
(C) ___________ $
(D) ____________ $
(E) ___________ $
Expert Solution
Step 1
Interest = Face amount x Interest rate x (Term of note / 360)
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