Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days from one of its customers. After 70 days Al Havier discounted the note at the Short West Bank at a discount rate of 15%. The note was made on September 12. a. What is the maturity date of the note? b.What is the maturity value of the note? c. What is the discount date of the note?
Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days from one of its customers. After 70 days Al Havier discounted the note at the Short West Bank at a discount rate of 15%. The note was made on September 12. a. What is the maturity date of the note? b.What is the maturity value of the note? c. What is the discount date of the note?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Al Havier Manufacturing received a Php 350,000 promissory note at 11% simple interest for 96 days from one of its customers. After 70 days Al Havier discounted the note at the Short West Bank at a discount rate of 15%. The note was made on September 12.
a. What is the maturity date of the note?
b.What is the maturity value of the note?
c. What is the discount date of the note?
d. What proceeds will Al Havier receive after discounting the note?
e. How much Al Havier Manufacturing will receive from its customer after 70 days?
f. How much Al Havier Manufacturing will receive from Short West Bank?
g. How much Short West Bank will receive from the customers of Al Havier manufacturing?
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