WileyPLUS: MyWileyPLUS I Hele I Contact Us 1 Log Ou Weygandt, Accounting Princip

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WileyPLUS: MyWileyPLUS I Hele I Contact Us 1 Log Ou Weygandt, Accounting Principles, 12e PRINCIPLES OF ACCOUNTING 1 & 11 (ACC 201-202 STANDARD VIEw PRINTER VERSION BACK NEXT> Brief Exercise 9-9 Compute interest and find the maturity date for the following notes. (Use 360 days for calculation.) art Date of Interest Note Principal Rate (%) Terms Interest Maturity Date (a) June 10 $100,800 6% 60 days s (b) July 14 $84,800 7% 90 days (c) April 27 $28,800 art 75 days $.. LINK TO TEXT Question Attempts: 0 of 3 used SAVE FOR ATER SUBMIT ANSWE

Explanation / Answer

Interest = Principal x Rate x Time

Assuming number of days = 360

a) Interest = $100,800 x 6% x 60 / 360 = $ 1008

Maturity = Days in June (30 - 10 = 20) + Days in July = 31 + Remaining days after June and July (60 - 20 - 31 = 9th August

b) Interest = $84800 x 7% x 90 / 360 = $ 1484

Maturity = Days in July (31 - 14 = 17) + Days in August = 31 + Days in September = 30 + Remaining days after July, August and September (90 - 17 - 31 - 30) = 12th October

c) Interest = $28800 x 8% x 75 / 360 = $ 480

Maturity = Days in April (30 - 27 = 3) + Days in May = 31 + Days in June = 30 + Remaining days after April, May and June (75 - 3 - 31 - 30 = 11th July

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