Date of Note Face Amount Interest Rate Term of Note a. January 5 * $94,000 8%...

Date of Note	Face Amount		Interest Rate	Term of Note
a.	January 5 *	$94,000		8%	120 days
b.	February 15 *	24,000		7	30 days
c.	May 19	64,000		8	60 days
d.	August 20	34,200		4	75 days
e.	October 19	49,000		5	75 days

* Assume a leap year in which February has 29 days.

Assume 360 days in a year when computing the interest.

Round your answers to the nearest dollar.

Note	Due Date	Interest
a.	May 4	$
b.	Mar. 16
c.	July 18 Correct
d.	Nov. 3
e.	Jan. 2

Expert Solution

Note	Due Date	Interest
a.	4-May	$ 2,507
b.	Mar. 16	$ 140
c.	18-Jul	$ 853
d.	Nov. 3	$ 285
e.	Jan. 2	$ 510

Calculated as

Note	Date of Note	Face Amount	Rate of Interest		Formulat for interest Calculation	Interest(Rounded off)
a.	January 5 *	$94,000	8%	120	=$94000 x 8% x 120/360	$ 2,507
b.	February 15 *	24,000	7%	30	=24000 x 7% x 30/120	$ 140
c.	19-May	64,000	8%	60	=64000 x 8% x 60/360	$ 853
d.	20-Aug	34,200	4%	75	=34200 x 4% x 75/360	$ 285
e.	19-Oct	49,000	5%	75	=49000 x 5% x 75/360	$ 510

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ekkarill92 answered 2 years ago

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