Illinois Bank lends Lisle Furniture Company $70,000 on December 1. Lisle Furniture Company signs a $70,000, 6%, 4-month note. The total cash paid at maturity of the note is: (Round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The total cash paid at maturity includes the principal and the interest. The interest is calculated as $70,000 * 6% * (4/12) = $1,400. Therefore, the total cash paid is $70,000 + $1,400 = $71,400.

Illinois Bank Lends Lisle Furniture Company $70,000 on December 1