Question

Compute interest and find the maturity date for the following notes. (Round answers to O decimal places, eg. 825) Date of Note Principal (a) ne 10 (b) July 14 (c) April 27 $ 84,110 54,900 $12,670 Interest Rate (%) 6% 7% 8% Terms 60 days 90 days 75 days Interest Maturity Date (a) $ August 9 (b) $ October 12 (c) $ July 11 eTextbook and Media List of Accounts

Answer 1

	Interest	Maturity date
(a)	$841 ($84,110 × 6% × 60/360)	August 9 ( From june 10 to 60 days)
(b)	$961 ($54,900 × 7% × 90/360)	October 12 (From july 14 to 90 days)
(c)	$211 ($12,670 × 8% × 75/360)	July 11 (From april 27 to 75 days)

Note:- Note the use of 360 day years. This is a common way to compute interest. However some prefer to use 365 days.