Question

Determine the maturity date and compute interest for each note. (Use 360 days a year. Do not round intermediate calculations.) Note Contract Date Principal Interest Rate Period of Note (Term) 1. March 7 $ 12,000 5 % 60 days 2. May 21 18,000 7 90 days 3. October 26 14,000 4 45 days

Answer 1

Answer:

Note   Contract Date   Principal   Interest Rate   Period of Note (Term)

1              March 7            $12,000           5 %                    60 days

2.             May 21             $18,000           7%                      90 days

3.            October 26      $ 14,000           4%                     45 days

1. Maturity date = 6 May

Interest expenses = $12,000*5%*60/360

Interest expenses = $100

2. Maturity date = 19 August

Interest expenses = $18,000*7%*90/360

Interest expenses = $315

3. Maturity date = 10 December

Interest expenses = $14,000*4%*45/360

Interest expenses = $70