CALCULATOR ME SSAGE MYINSTRUCTOR FULLSCREEN PRINTER VERSION Brief Exercise 8-8 P
ID: 2524623 • Letter: C
Question
CALCULATOR ME SSAGE MYINSTRUCTOR FULLSCREEN PRINTER VERSION Brief Exercise 8-8 Presented below are data on three promissory notes. Determine the missing amounts. Round answers for Total Interest to 0 decimal places, e g. 825 Round annual interest rate to O decimal places, e g 15% Date of Note Terms 60 days 30 days Maturity Date Principal $605,900 89,390 113,890 Annual Interest Rate Total Interest (a) April (b) July 2 (c) March 76 months 10% $596 11% $ SHOW LIST OF ACCOUNTS INTERACTIVE TUTORIAL LINK TO TEXTExplanation / Answer
(a) date of note = arpril 1
Add : 60 days = 60
total = 61 days
subract each months days from 61 to arrive a day that fits in a month= 61 - 30 ( april has 30 days)
= 31 ( it falls in may
Maturity date = may 31
Total interest = Principal * interest rate * note days / Total number of days in a year.
Total interest = $ 605,900 * 10 % * 60 /360 = $ 10,098.33
(b)
date of note = July 2
Add : 30 days = 30
total = 32 days
subract each months days from 32 to arrive a day that fits in a month= 32 - 31 ( July has 31 days)
= 1 ( it falls in August )
Maturity date = August 1st
Interest rate = Interest / Principal * 360 / term of days
= $ 596 / 89,390 * 360 / 30
= 0.0800
= 8 %
(c) date = march 7
Add : 6 months
march (3) + 6 months = 9 which is september
Maturity date = September 7
Total interest = Principal * interest rate * terms of months / total number of months in a year
= $ 113,890* 11% * 6 /12
= $ 6,263.95
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