Homework Answers
1. Term of the note: 120 days
| Month | Number of Days |
| November | 30 - 19 = 11 |
| December | 31 |
| January | 31 |
| February | 28 |
| March | 19 |
| Total | 120 |
2. Interest rate of the note: 9%
Interest = Principal x Interest rate x Time
($3605 - $3500) = $3500 x I x 120/360
I = ($105 x 360)/($3500 x 120) = 9%
3.
| Dec. 31 | Interest receivable | 37 | |
| Interest revenue ($3500 x 9% x 42/360) | 37 |
4.
| Mar. 19 | Cash | 3605 | |
| Notes receivable-Fast Feet Co. | 3500 | ||
| Interest receivable | 37 | ||
| Interest revenue ($3500 x 9% x 78/360) | 68 |
Per HOMEWORKLIB RULES the first question has been answered. Please post the remaining independent question separately. Thank you.
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