An automobile dealer sold three vans to FDN Company on April 1, for the totalprice of P1,500,000. Under the terms of the sale, the automobile dealer receivedP500,000 cash and a promissory note with 5% interest due in full 12 monthslater. How much is the maturity value of the note?

Maturity Value : It is the estimated income on the amount of investment for a given period. It is…

Answered: ce of P1,500,000. Under the terms of…

ce of P1,500,000. Under the terms of the sale, the automobile dealer 00,000 cash and a promissory note with 5% interest due in full 12 mo er. How much is the maturity value of the note?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An automobile dealer sold three vans to FDN Company on April 1, for the total
price of P1,500,000. Under the terms of the sale, the automobile dealer received
P500,000 cash and a promissory note with 5% interest due in full 12 months
later. How much is the maturity value of the note?

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