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On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $27,000. What is the maturity value of the note on March 1

User Bkirkbri
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1 Answer

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Answer: $27,900

Step-by-step explanation:

From the question, we are informed that on November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $27,000.

The maturity value of the note on the note on March 1 will be the face value plus the interest. This will be:

= $27,000 + [($27,000 × 10%)/360 × 120]

= $27,000 + [($2700/360) × 120]

= $27,000 + ($7.5 × 120)

= $27,000 + $900

= $27,900

User Markens
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