On December 12, the G. Baker Corporation purchases $13,000 of equipment by issuing a 30- day, 9% note payable. The total cash paid on the maturity date of the note is:

Name: On December 12, the G. Baker Corporation purchases $13,000 of equipment by issuing a 30- day, 9% note payable. The total cash paid on the maturity date of the note is:
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Question

Quizplus · Accepted Answer

The interest on the note is calculated as $13,000 * 9% * (30/365) = $97.50. Therefore, the total cash paid on the maturity date is $13,000 + $97.50 = $13,097.50.