Total cash paid maturity Michigan Bank lends Canton Furniture Company$100,000 on December 1. Canton Furniture Companysigns a $100,000, 8%, 4 minus-month note. The totalcash paid at maturity of the note is:A. $102,666.67B. $100,000C. $108,000D. $106,000

To determine the total cash paid at maturity, we used the simple interest formula, which calculates…

Answered: Michigan Bank lends Canton Furniture…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 3P

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Michigan Bank lends Canton Furniture Company $100,000 on December 1. Canton Furniture Company signs a $100,000, 8%, 4 minus-month note. The total cash paid at maturity of the note is: A. $102,666.67 B. $100,000 C. $108,000 D. $106,000