Question

Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: (Use 360 days for interest calculation. Round to the nearest dollar.) Date of Note Principal Interest Rate (%) Term Maturity Rate Interest ($) August 5 $6,000 8 120 days December 3 $160 May 10 $16,800 7 30 days June 9 $98 October 20 $25,000 9 45 days December 4 $281.25 July 6 $4,500 11 60 days September 4 $82.50 September 15 $9,000 9 75 days November 29 $168.75

Answer 1

Answer:  

1.   Maturity Date December 3       Interest      $160
2.  Maturity Date June 9         Interest               $98
3.  Maturity Date December 4       Interest       $281.25
4.    Maturity Date September 4         Interest     $82.50
5.   Maturity Date November 29         Interest     $168.75

Explanation:

Working

Principal of the Note * Annual Interest Rate * Time= Interest

1.   $6,000  * 8  * 120 days/360  =        $160
2.   $16,800 *  7  * 30 days/360  =       $98
3.    $25,000 * 9 *    45 days/360 =           $281.25
4.    $4,500 *   11   *    60 days/360 =             $82.50
5.     $9,000  *   9    *      75 days /360 =   $168.75

Date of Note         Principal Interest Rate (%) Term Maturity Rate Interest ($)

August 5                $6,000           8                           120 days           $160

Maturity Date December 3       Interest      $160

May 10                     $16,800            7                        30 days               $98

Maturity Date June 9         Interest               $98

October 20              $25,000          9                            45 days           $281.25

Maturity Date December 4       Interest       $281.25

July 6                          $4,500            11                        60 days             $82.50

Maturity Date September 4         Interest     $82.50

September 15              $9,000            9                            75 days        $168.75

Maturity Date November 29         Interest     $168.75

Maturity Date Computation=

Days In August =                                31

Minus the date of Note =                   5

Days Remaining in August                26

Add Days in September                    30

Add Days in October                         31

Add Days in November                      30

Maturity Date of Dec 3                         3

Period of the note in days                  120 days

Days In May =                                    31

Minus the date of Note =                   10

Days Remaining in May                      21

Maturity Date of June 9                       9

Period of the note in days                  30 days

Days In October =                               31

Minus the date of Note =                   20

Days Remaining in October               11

Add Days in November                    30

Maturity Date of Dec 4                        4

Period of the note in days                45 days

Days In July     =                                31

Minus the date of Note =                   6

Days Remaining in July                     25

Add Days in August                           31

Maturity Date of Sept 4                      4

Period of the note in days                  60 days

Days In September =                         30

Minus the date of Note =                   15

Days Remaining in September          15

Add Days in October                           31

Maturity Date of  Nov 29                   29

Period of the note in days                 75 days