Question

The maturity value of a $246,000, 4%, 45-day note receivable dated July 3, assuming a 360-day year, is

A 60-day, 7% note for $6,600, dated April 15, is received from a customer on account. The face value of the note is

Answer 1

Part 1

Par value of note = $246,000

Interest rate = 4%

Time period of note = 45 days

Year = 360 days

Interest on note = Par value of note x Interest rate x 45/360

= 246,000 x 4% x 45/360

= $1,230

Maturity value of note = Par value of note + Interest on note

= 246,000 + 1,230

= $247,230

The maturity value of a $246,000, 4%, 45-day note receivable dated July 3, assuming a 360-day year, is = $247,230

Part 2

A 60-day, 7% note for $6,600, dated April 15, is received from a customer on account. The face value of the note is = $6,600

Par value or face value $6,600 of the note is the amount on which interest is calculated.