Question

Compute interest and find the maturity date for the following notes. (Round answers to 0 decimal places, e.g. 825) Date of Note Principal Interest Rate (%) Terms (a) June 10 $78,110 7% 60 days (b) July 14 $46,200 8% 90 days (c) April 27 $11,700 9% 75 days

Answer 1

Answer: Interest Maturity Date

(a) 78110×7%×(60/360) = $911 August 9

(b) 46200×8%×(90/360)= $924 October 12

(c) 11700×9%×(75/360) = $219 July 11

Step-by-step explanation:

To compute the interest we apply the following formula:

Interest= (Principal) × (Interest Rate) ×(Terms ÷360)

For the Maturity date, we add Terms to the Date of note .

By using the above formula for the given table, we get the following values

Interest Maturity Date

(a) 78110×7%×(60/360) = $911 August 9

(b) 46200×8%×(90/360)= $924 October 12

(c) 11700×9%×(75/360) = $219 July 11