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26 July, 06:09

A company borrowed 10,000 by signing a 180-day promissory note 9%. the total interest due on the maturity date is: (use 360 days a year)

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  1. 26 July, 08:37
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    Answer: $450

    Explanation:

    A Promissory note is a type of notes which carry a fixed interest rate. In a Promissory note, the issuer of the note has made a promises to pay a fixed amount with interest on the maturity date to the payee.

    Answer and Explanation:

    Face value of the promissory note = $10,000

    Maturity period = 180 days

    Interest rate = 9%

    Interest payable on maturity = $10,000 * 9% * 180/360

    = 10,000 * 0.09 * 0.5

    = $450

    The total interest due on the maturity date is $450.
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