Question

A company receives a 10%, 120-day note for $1, 500. The total interest due on the maturity date is:______.a) $50,00. b) $150,00. c) $75,00. d) $37, 50. e) $87, 50.

Answer 1

Answer:a) --A -$50.00

Step-by-step explanation:

Using days of year = 360 days

Interest due = Principal x rate x period

= $1500 x 10% x 120/360

= $50

The total interest due on the maturity date is:__$50.00___