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Determine the due date and the amount of interest due at maturity on the following notes: Date of note    A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note      Due date.        Interest (A)          __________     $ (B)         ___________   $ (C)         ___________   $ (D)         ____________   $ (E)         ___________    $

Determine the due date and the amount of interest due at maturity on the following notes: Date of note    A. January 10* B . March 19 C. June 5 D. September 8 E. November 20 * February 2016 has 28 days Face amount A.$40,000 B. 18,000 C. 90,000 D. 36,000 E. $27,000 Interest rate A. 5% B. 8% C. 7% D. 3% E. 4% Term of note A. 90 days B. 180 days C. 30 days D. 90 days E. 60 days Assume 360 days in a year one commuting the interest. Note      Due date.        Interest (A)          __________     $ (B)         ___________   $ (C)         ___________   $ (D)         ____________   $ (E)         ___________    $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Determine due date and interest on notes

Determine the due date and the amount of interest due at maturity on the following notes:

Date of note   

A. January 10*

B . March 19

C. June 5

D. September 8

E. November 20

* February 2016 has 28 days

Face amount

A.$40,000

B. 18,000

C. 90,000

D. 36,000

E. $27,000

Interest rate

A. 5%

B. 8%

C. 7%

D. 3%

E. 4%

Term of note

A. 90 days

B. 180 days

C. 30 days

D. 90 days

E. 60 days

Assume 360 days in a year one commuting the interest.

Note      Due date.        Interest

(A)          __________     $

(B)         ___________   $

(C)         ___________   $

(D)         ____________   $

(E)         ___________    $

 

Expert Solution
Step 1

Interest = Face amount x Interest rate x (Term of note / 360)

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