Question

Determine the due date and the amount of interest due at maturity on the following notes. Assume 360 days per year.

	Date of Note	Face Amount	Interest Rate	Term of Note
(a)	October 1	$21,000	8%	60 days
(b)	August 30	9,000	10	120 days
(c)	May 30	12,000	12	90 days
(d)	March 6	15,000	9	60 days
(e)	May 23	9,000	10	60 days

Due Date	Interest
1.	$
2.
3.
4.
5.

Answer 1

• All working forms part of the answer
• Requirement

Requirements	Due Date	Interest
a	30-Nov	$                    280
b	28-Dec	$                    300
c	28-Aug	$                    360
d	05-May	$                    225
e	22-Jul	$                    150

---Working

Requirements		Days to maturity	Due Date	Amount	Interest rate	Interest
[A]		[B]	[C = A + B]	[D]	[E]	[F = D x E x B/360]
a	01-Oct	60 days	30-Nov	$                21,000	8%	$                    280
b	30-Aug	120 days	28-Dec	$                  9,000	10%	$                    300
c	30-May	90 days	28-Aug	$                12,000	12%	$                    360
d	06-Mar	60 days	05-May	$                15,000	9%	$                    225
e	23-May	60 days	22-Jul	$                  9,000	10%	$                    150