Question

A company borrowed 10,000 by signing a 180-day promissory note 9%.the total interest due on the maturity date is: (use 360 days a year)

Answer 1

Answer: $450

Explanation:

A Promissory note is a type of notes which carry a fixed interest rate. In a Promissory note, the issuer of the note has made a promises to pay a fixed amount with interest on the maturity date to the payee.

Answer and Explanation:

Face value of the promissory note = $10,000

Maturity period = 180 days

Interest rate = 9%

Interest payable on maturity = $10,000 × 9% × 180/360

= 10,000 × 0.09 × 0.5

= $450

The total interest due on the maturity date is $450.