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.)
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 |
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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