Michigan Bank lends Canton Furniture Company $100,000 on December 1. Canton Furniture Company signs a $100,000, 8%, 4-month note. The total cash paid at maturity of the note is:

Name: Michigan Bank lends Canton Furniture Company $100,000 on December 1. Canton Furniture Company signs a $100,000, 8%, 4-month note. The total cash paid at maturity of the note is:
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Interest = $100,000 x 8% x 4/12 = $2,666.67Total cash paid at maturity = $100,000 + $2,666.67 = $108,000

Michigan Bank Lends Canton Furniture Company $100,000 on December 1