On February 1, Platt Company received a €5,000, 10%, four-month note receivable.The cash to be received by Platt Company when the note becomes due is

Question

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The interest on the note is calculated as:
Interest = Principal x Rate x Time
= €5,000 x 10% x 4/12
= €166.67
The cash to be received by Platt Company when the note becomes due is the sum of the principal and interest:
Cash = Principal + Interest
= €5,000 + €166.67
= €5,166.67 (rounded to €5,167)

On February 1, Platt Company Received a €5,000, 10%, Four-Month