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Nikitich [7]
3 years ago
13

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. What is the maturity value (principa

l plus interest) of the note on March 1
Business
1 answer:
Darya [45]3 years ago
4 0

Answer:

$9,240

Explanation:

Computation of Maturity Value of the note

First step is to find the interest amount using this formula

Interest amount=(Face value *Note payable)*Numbers of days to signed/Numbers of days in a year

Let plug in the formula

Interest Amount = ($9,000*8%)*120/365

Interest amount = $720 * 120 / 360

Interest amount=720*0.33333

$240

Next step is to calculate for the Maturity value using this formula

Maturity Value = Face value +Interest amount

Let plug in the formula

Maturity value =$9,000 + $240

Maturity value = $9,240

Therefore the maturity value of the note on March 1 will be $9,240

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3 years ago
A competitive firm currently produces and sells 500 units of output. Its total revenue is $3,500; the marginal cost of producing
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To: CEO

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Respected Sir,

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