Question

Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with a face value of $230,000.1. On what date does this note mature? (Assume that February has 28 days)A. May 25, 2018.B. May 26, 2018.C. May 27, 2018.D. May 28, 2018.E.May 30, 2018.

Answer 1

option (E) May 30, 2018.

Step-by-step explanation:

Data provided in the question:

Amount borrowed = $230,000

Date on which amount was borrowed = December 1, 2017

Maturity period = 180 days

Now,

Month number of days Days left

December (2017) 30 180 - 30 = 150

[note's issue date is omitted]

January (2018) 31 150 - 31 = 119

February (2018) 28 119 - 28 = 91

March (2018) 31 91 - 31 = 60

April (2018) 30 60 - 30 = 30

Hence,

The bonds will mature on 30 days after the month of April i.e on May 30, 2018

Hence,

The correct answer is option (E) May 30, 2018.