Question

Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: (Use 360 days for interest calculation. Round to the nearest dollar.)
Date of Note Principal Interest Rate Term
a. August 5 $6,000 8% 130 days
b. May 10 16,800 7% 100 days
c. October 20 24,000 9% 55 days
d. July 06 4,500 10% 70 days
e. September 15 9,000 8% 85 days
Maturity Date
Month Day Interest
a. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer $Answer
b. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
c. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
d. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer
e. AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary Answer Answer

Answer 1

Answer:

Maturity Dates and Interests of Notes Receivable:

Date of Note          Principal   Interest     Term          Maturity Date

                                                   Rate                       Month       Day   Interest

a. August 5             $6,000         8%     130 days   December   13    $173.33

b. May 10                 16,800          7%     100 days   August        18     326.67

c. October 20         24,000         9%      55 days   December   14     330.00

d. July 06                  4,500        10%      70 days   September  14       87.50

e. September 15      9,000          8%      85 days   December    9     170.00

Total                    $60,300                                                              $1,087.50

Explanation:

a) Data and Calculations:

   Date of Note      Principal   Interest     Term          Maturity Date

                                                   Rate                          Calculations

a. August 5             $6,000         8%     130 days   Dec. 13(26+30+31+30+13)

b. May 10                 16,800          7%     100 days   Aug. 18 (21+30+31+18)

c. October 20         24,000         9%      55 days   Dec. 14 (11+30+14)

d. July 06                  4,500        10%      70 days   Sept. 14 (25+31+14)

e. September 15      9,000          8%      85 days   Dec. 9 (15+31+30+9)

Calculation of Interests:

a. = $173.33 ($6,000 * 8% * 130/360)

b. = $326.67 ($16,800 * 7% * 100/360)

c. = $330.00 ($24,000 * 9% * 55/360)

d. = $87.50 ($4,500 * 10% * 70/360)

e. = $170 ($9,000 * 8% * 85/360)