Fill in the missing information
Fill in the missing information
1. Find the missing information
2. Monetary Value: Round up the monetary value to the next whole value
Use 360 days = 1 year in computing for interest
| Face value of note | 10,000.00 |
| Date of the note | 07/14 |
| Interest rate | 18% |
| Term of note | (?) days |
| Maturity Date | ? |
| Interest on note | 375.00 |
| Maturity Value | ? |
Thank you for helping me :D
A note is a short term financial instrument that pays a fixed coupon interest.
Interest is usually paid at the maturity date along with repayment of the principal.
In our case, the Face value of the note is 10,000 and the rate of interest is 18%.
The amount of Interest given is 375
To calculate the term on the note, we can use the Interest calculation formula.
Interest = (Principal x Rate of Interest x Number of days of the note) /total number of days
375 = (10,000 x 18% x Number of days)/ 360
Therefore, Number of days = 75
That is, term of the note is 75 days.
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