Question
Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of...
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 $12,000 8% 160 days
b. May 10 33,600 7% 130 days
c. October 20 48,000 9% 85 days
d. July 06 9,000 10% 100 days
e. September 15 18,000 8% 115 days
Maturity Date :
Month ,Day ,Interest $.
Homework Answers
Answer #1
Answer:
Calculation of interest:
a.
Principal = $12,000
Term = 160 days
Interest Rate = 8%
Interest = 12000 * 8% * 160/360
= $427
b.
Principal = $33600
Term = 130 days
Interest Rate = 7%
Interest = 33600 * 7% * 130/360
= $849
c.
Principal = $48,000
Term = 85 days
Interest Rate = 9%
Interest = 48000 * 9% * 85/360
= $1,020
d.
Principal = $9,000
Term = 100 days
Interest Rate = 10%
Interest = 9000 * 10% * 100/360
= $250
e.
Principal = $18,000
Term = 115 days
Interest Rate = 8%
Interest = 18000 * 8% * 115/360
= $460
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