Question

On June 8, Williams Company issued an $82,710, 10%, 120-day note payable to Brown Industries. Assuming a 360-day year for your calculations, what is the maturity value of the note

Answer 1

Answer: $85467

Step-by-step explanation:

The information given from the question is written below:

Notes payable = $82710

Interest rate = 10%

Then, we will first calculate the interest expense which will be:

= $82710 × 10% × 120/360

= $82710 × 0.1 × 0.3333333

= $2757

Then, the maturity value will be:

= $82710 + $2757

= $85467