Question

Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:

Answer 1

Answer:

The maturity value is "$79790".

Explanation:

The given values are:

Principal

= $79,000

Time

= 30/360

Rate

= 12%

The interest on the cash loan to Ryan and Co will be:

= $79000\times 12 \ percent\times \frac{30}{360}$

= $790$ ($)

Maturity value

= $Principal\times (1+rate\times time)$

= $79000\times (1+(12 \ percent\times \frac{30}{360} )$

= $79000\times 1.0100$

= $79790$