Question

A company borrowed $28,000 by signing a 180-day promissory note at 6%. The total to be paid at maturity of the note is: (Use 360 days a year.)

Answer 1

Answer:

So maturity value will be equal to $282840

Explanation:

We have given borrowed amount = $28000

Signing day , that is note = 180

Total day in a year = 360 days

Interest rate = 6 %

So interest on the borrowed amount $=\frac{borrowed\ amount\times interest\ percent\ an\ amount\times note\ period}{days\ in\ year}=\frac{28000\times 6\times 180}{360}= 840$

So maturity value of the note = borrowed amount + interest on note period

= $28000+$840 = $28840

So maturity value will be equal to $282840