Question

On november 1, gentle company received a $3,000, 6%, three-month note receivable. the cash to be received by gentle company when the note becomes due is:

Answer 1

The answer is $3,045.

To solve:
Find first the interest.
Interest = Principal x Interest Rate x Time
I = $3000 * .06 * (90/360)
= $3000 * 0.015
= $45
$45 is the interest.

Add the interest to the principal to get the maturity value.
Maturity Value = Interest + Principal
MV = $45 + $3000
= $3045