Question

Determine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes: Date of Note Face Amount Interest Rate Term of Note a. January 10* $40,000 5% 90 days b. March 19 18,000 8 180 days c. June 5 90,000 7 30 days d. September 8 36,000 3 90 days is. November 20 27,000 4 60 days *Assume that February has 28 days. Assume 360-days in a year when computing the interest.

Answer 1

Answer:

See the explanation below.

Explanation:

                    Due date                               Interest Due        

a.                 April 9                         $40,000 * 5% * (90/360) = $500

b.                September 14              $18,000 * 8% * (180/360) = $720

c.                July 4                            $90,000 * 7% * (30/360) =$525

d.                December 6                 $36,000 * 3% * (90/360) = $270

e.             January 18 - next year    $27,000 * 4% * (60/360) = $180