Question

Mr. Robert signed a 120 day, 10% note with First Federal State Bank for $12,000 on August 5th. What will be the maturity date of the note? December 3rd December 4th November 30th December 2nd

Answer 1

The maturity date of the note will be October 31st.

Step-by-step explanation:

The maturity date of a note can be calculated by adding the number of days to the issue date. In this case, Mr. Robert signed a 120-day note on August 5th. To find the maturity date, we add 120 days to August 5th.

August has 31 days, so we have 120 - 31 = 89 days remaining.

September has 30 days, so we have 89 - 30 = 59 days remaining.

October has 31 days, so we have 59 - 31 = 28 days remaining.

November has 30 days, so we have 28 - 30 = -2 days remaining.

Since we have a negative number of days remaining in November, we go back one day to October 31st. Therefore, the maturity date of the note is October 31st.

Answer 2

The maturity date of the note is: December 3rd.

Step-by-step explanation:

From August 5th to December 3rd there are exactly 120 days.

From Augusth 5th to September 4th: 30 Days (This month has 31 days)

From September 4th to October 4th: 30 Days

From October 4th to November 3rd: 30 Days (This month has 31 days)

From November 3rd to December 3rd: 30 Days

Total: 120 days.