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Determine the Due Date and Amount of Interest Due at Maturity

Question 83

Essay

Determine the due date and amount of interest due at maturity on the following notes (Assume 360 days in a year):  Origination Date  Face  Amount  Term  of Note  Interest  Rate  Maturity  Date  Interest  Amount  (a) March 1 $5,00060 days 9% (b) May 15 $9,000120 days 8%\begin{array} { c c c c c c } \text { Origination Date } & \begin{array} { c } \text { Face } \\\text { Amount }\end{array} & \begin{array} { c } \text { Term } \\\text { of Note }\end{array} & \begin{array} { c } \text { Interest } \\\text { Rate }\end{array} & \begin{array} { c } \text { Maturity } \\\text { Date }\end{array} & \begin{array} { c } \text { Interest } \\\text { Amount }\end{array} \\\hline \text { (a) March 1 } & \$ 5,000 & 60 \text { days } & 9 \% & \underline{\quad\quad}&\underline{\quad\quad} \\\text { (b) May 15 } & \$ 9,000 & 120 \text { days } & 8 \% & \underline{\quad\quad} &\underline{\quad\quad} \\ \end{array}

Correct Answer:

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(a)April 30; $75 = (...

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