Answered: Principal $60,000, Rate of interest…

Principal $60,000, Rate of interest 14%, Time 60 days.Date note made July 5, Date noted discontinued July 20. Note to be discounted at 11% Find maturity value, Discount Period and Procceeds.

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

Principal $60,000, Rate of interest 14%, Time 60 days.Date note made July 5, Date noted discontinued July 20. Note to be discounted at 11%

Find maturity value, Discount Period and Procceeds.

Expert Solution

Step 1

Solution:

Principal amount of note = $60,000

Date of issue = July 5

Period = 60 days

Maturity date = 5 July + 60 days = September 3

Rate of interest = 14%

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