Jaspreet Industries accepts a $5,000, 90-day, 5% note receivable from a customer on an overdue Accounts Receivable. The amount due upon maturity is $5,062.50.
Interest = $5,000 × .05 × 90/360 = $62.50
Maturity value = $5,000 + 62.50 = $5,062.50

Question

Quizplus · Accepted Answer

The calculation for interest and maturity value is correct, and the amount due upon maturity is indeed $5,062.50. Therefore, the statement is true.

Jaspreet Industries Accepts a $5,000, 90-Day, 5% Note Receivable from a Customer