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Keesha Co. borrows $165,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $165,000. On what date does this note mature? Assume a 365 day year.
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Keesha Co. borrows $165,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $165,000. On what date does this note mature? Assume a 365 day year.

User Awenkhh
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4 votes

Answer:

Step-by-step explanation:

Principal amount $165000

Rate - 11%

time - 180

Interest = 165000*0.11=$18150

Total Maturity = 165000*0.11*180/365= 8950.68

Interest Expense for year 2017 = 165000*0.11*61/365 = 3033

Interest Expnese for year 2018 = 165000*0.11*119/365 = 5917

Ans. April 28, 2018

User Jack Hughes
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