Determine the due date and the amount of interest due at maturity on the following notes:
Date of Note Face Amount Interest Rate Term of Note a. January 10* $40,000 5% 90 days b. March 19 18,000 8 180 days c. June 5 90,000 7 30 days d. September 8 36,000 3 90 days e. November 20 27,000 4 60 days *Assume that February has 28 days.
Answer:
Due Date Interest
a. Apr. 10 $500 [$40,000 × 0.05 × (90 ÷ 360)]
b. Sept. 15 720 [$18,000 × 0.08 × (180 ÷ 360)]
c. July 5 525 [$90,000 × 0.07 × (30 ÷ 360)]
d. Dec. 7 270 [$36,000 × 0.03 × (90 ÷ 360)]
e. Jan. 19 180 [$27,000 × 0.04 × (60 ÷ 360)]
