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tensa zangetsu [6.8K]
2 years ago
11

A company receives a 10%, 90-day note for $2,700. The total interest due on the maturity date is: (Use 360 days a year.)

Business
1 answer:
Rom4ik [11]2 years ago
8 0

Answer:

Interest amount = $67.5

Explanation:

Use the below formula to find the interest amount:

Interest amount = The value of note x Interest rate x (90 / 360)

Given value of note = $2700

Interest rate = 10%

Time = 90/360

Now plug the value in the above formula and solve for the interest due:

Interest amount = The value of note x Interest rate x (90 / 360)

Interest amount = 2700 x 10% x (90 / 360)

Interest amount = $67.5

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Based on the information given the maturity value of the note is: $82,500.

Using this formula

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Where:

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Maturity value of note=$75,000+($75,000×2 year×0.05)

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