On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $3823.33 ✔ Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $ 124.99 Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $3825.22 Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $ 24.67 Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky is: $24.71 x

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Please help me solve required 3 and 5.

On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing from a customer. It bears
interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364
days or 52 weeks.
Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $3823.33
Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $ 124.99
Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $3825.22
Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $ 24.67
Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky
is: $24.71
Transcribed Image Text:On February 20th, a 5 month note for $3,700 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $3823.33 Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $ 124.99 Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $3825.22 Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $ 24.67 Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky is: $24.71
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