Question

Determine the due date and the amount of interest due at maturity on the following notes. When calculating interest amounts, assume there are 350 days in a year. Note Issue Date Amount Interest Rate Time(Days) 1.   Jan. 20 $100,000 6% 30 2. March 10 $50,000 3% 60 3. May 15 $85,000 4% 45 4. Sept. 21 $90,000 7% 90    5. Dec.1    $75,000   8% 120 Note Due Date Interest on Note Maturity Value Select an answer: a. Feb. 19, b. Dec 20, c,. June 29, d. March 31, e. May 9 Please show all steps. Thanks.      

Answer 1

	Note:The formula for Interest shall be Face Amount*Interest rate*Days to Mature/350 days
	Let's calculate the Due date of each Note & Interest Amount
		Due Dates	Interest Amount
	Note no.1			$                514
	Days in January(31-20)	11	days
	Days in February(30-11)	19	days
	So the Due date for Note no. 1 is February 19
	Note no.2
	Days in March(31-10)	21	days	$                257
	Days in April	30	days
	Days in May(60-21-30)	9	days
	So the Due date for Note no. 2 is May 9
	Note no.3			$                437
	Days in May(31-15)	16	days
	Days in June(45-16)	29	days
	Days in May(60-21-30)	9	days
	So the Due date for Note no. 3 is June 29
	Note no.4			$             1,620
	Days in Sept(30-21)	9	days
	Days in Oct	31	days
	Days in Nov	30	days
	Days in Dec(90-9-31-30)	20	days
	So the Due date for Note no. 4 is Dec 20
	Note no.5			$             2,057
	Days in Dec	31	days
	Days in Jan	31	days
	Days in Feb	28	days
	Days in March(120-31-31-28)	30	days
	So the Due date for Note no. 5 is March 30