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8 April, 08:26

Compute interest and find the maturity date for the following notes. (Round answers to 0 decimal places, e. g. 825. Use 360 days for calculation.) Date of Note Principal Interest Rate (%) Terms (a) June 10 $84,000 8% 60 days (b) July 14 $52,400 9% 90 days (c) April 27 $12,000 10% 75 days

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  1. 8 April, 08:35
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    (a) $1,120; 9th August

    (b) $1,179; 12th October

    (c) $250; 11th July

    Explanation:

    (a) Given that,

    Note Principal value = $84,000

    Interest rate = 8%

    Time period = 60 days

    Interest:

    = $84,000 * 0.08 * (60/360)

    = $1,120

    Maturity date:

    = 20 days of June + 31 days of July + 9 days of August

    = Total of 60 days

    Therefore, the date of maturity is 9th of August.

    (b) Given that,

    Note Principal value = $52,400

    Interest rate = 9%

    Time period = 90 days

    Interest:

    = $52,400 * 0.09 * (90/360)

    = $1,179

    Maturity date:

    = 17 days of July + 31 days of August + 30 days in September + 12 days in October

    = Total of 90 days

    Therefore, the date of maturity is 12th of October.

    (c) Given that,

    Note Principal value = $12,000

    Interest rate = 10%

    Time period = 75 days

    Interest:

    = $12,000 * 0.1 * (75/360)

    = $250

    Maturity date:

    = 3 days in April + 31 days in May + 30 days in June + 11 days in July

    = Total of 75 days

    Therefore, the date of maturity is 11th of July.
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