Question

etermine Due Date and Interest on Notes Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 360 days in a year. Round intermediate calculations to 4 decimal places, and round your final answers to the nearest whole dollar. Date of Note Face Amount Interest Rate Term of Note a. January 15 $51,690 10 % 30 days b. April 1 16,370 9 90 days c. June 22 23,700 7 45 days d. August 30 23,265 12 120 days e. October 16 20,795 8 50 days

Answer 1

Answer:

Determination of the Due Date and the Amount of Interest due at Maturity:

     Due Date            Interest at Maturity

a)   February 15        $431 ($51,690 x 10% x 30/360)

b)   July 1                   $368  ($16,370 x 9% x 90/360)

c) August 7               $207 ($23,700 x 7% x 45/360)

d) December 30      $931 ($23,265 x 12% x 120/360)

e) December 6        $231 ($20,795 x 8% x 50/360)

Explanation:

a) Schedule of

Date of Note          Face Amount        Interest Rate        Term of Note

a. January 15             $51,690                   10 %                    30 days

b. April 1                       16,370                     9                        90 days

c. June 22                  23,700                     7                        45 days

d. August 30              23,265                    12                      120 days

e. October 16             20,795                     8                        50 days

b. Interest on Notes is calculated using the annual rate of interest.  To arrive at the interest amount, the period of use of the notes would be applied in order to annualize the rate.

c. To get the maturity date, the period of the note is added to the date on which the note was dated.