A company gives a $50,000, 60-day note at the bank at 7%. How much will the company pay the bank at maturity?

Name: A company gives a $50,000, 60-day note at the bank at 7%. How much will the company pay the bank at maturity?
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Question

Quizplus · Accepted Answer

The company will pay the principal amount plus interest at maturity. The interest is calculated as: Principal x Rate x Time = $50,000 x 0.07 x (60/365) = $575.34. Therefore, the total amount paid at maturity is $50,000 + $575.34 = $50,575.34.

A Company Gives a $50,000, 60-Day Note at the Bank