Griffin Graphics accepted 7%, 60-day note for $21,500 from Chillout Plastics. What is the total cash to be received on maturity of this note receivable?

Name: Griffin Graphics accepted 7%, 60-day note for $21,500 from Chillout Plastics. What is the total cash to be received on maturity of this note receivable?
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

The total cash received on maturity includes the principal and interest. Interest = Principal x Rate x Time = $21,500 x 0.07 x (60/365) = $247.40. Total cash = $21,500 + $247.40 = $21,747.40.

Griffin Graphics Accepted 7%, 60-Day Note for $21,500 from Chillout