On July 9,Mifflin Company receives an $8,500,90-day,8% note from customer Payton Summers as payment on account.
-Compute the amount due at maturity for the note and interest.(Use 360 days a year.)

Question

Quizplus · Accepted Answer

The interest on the note is calculated as follows: Principal x Rate x Time = $8,500 x 8% x (90/360) = $170. The amount due at maturity is the principal plus interest: $8,500 + $170 = $8,670.

On July 9,Mifflin Company Receives an $8,500,90-Day,8% Note from Customer