Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value of $200,000. 1. On what date does this note mature?

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Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value of $200,000. 1. On what date does this note mature?

January 25, 2018.

January 26, 2018.

January 27, 2018.

January 28, 2018.

January 30, 2018.

2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Do not round intermediate calculations.)

business accounting

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Answer 1

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1
January 30, 2018

2
	Total through maturity	Interest Expense 2017	Interest Expense 2018
Principal	200000	200000	200000
Rate (%)	9%	9%	9%
Time	90/360	60/360	30/360
Total interest	4500	3000	1500

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Answer 2

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Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value of $200,000. 1. On what date does this note mature?

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Keesha Co. borrows $200,000 cash on November 1, 2017, by signing a 90-day, 9% note with a face value of $200,000. 1. On what date does this note mature?