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Jones Company recieved a 90 day, 6% note for $400,000 dated May 5.   (A )determine the...

Jones Company recieved a 90 day, 6% note for $400,000 dated May 5.   (A )determine the due date of the note: Number of days in note ---- -Days remaining in May---- - days remaining in June--- - days remaining in July----- --days left in August---- (B) Maturity Date: (C) Calculate the interest: Please show all steps. Thanks.          

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Answer #1

In the following calculation we expressed the time period as a fraction of a 360 day year because the interest rate is an annual rate and the note life was days.

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