On July 7, A-1 Credit Union loaned $440,000 to Bridal Retail Shop on a 90 day, 8% note. What is the maturity date of the note?

Question

Quizplus · Accepted Answer

The maturity date is calculated by adding the term of the note (90 days) to the issue date (July 7). July has 24 days remaining after the 7th, August has 31 days, and September has 30 days. Adding these gives 85 days, so 5 more days into October makes the maturity date October 5.

On July 7, A-1 Credit Union Loaned $440,000 to Bridal