Question

SA 90-day, 12% note for S 10,000, dated May 1, is received from a customer on account. The maturity value of the note is a. $10,000 $10,300 c. $450 d. $9,550 6.A 60-day, 12% note for $10,000, dated May 1, is received from a customer on account. If the note is discounted on May 21 at 15%, the proceeds are a. $170 b. $9,830 c. $10,000 d. $10,030 7.A 60-day, 12% note received from a customer for $50,000, dated May 15, is endorsed to the bank on May 25 and the bank discounts the note at 15%. If the maker dishonors the note and the bank charges a $20 protest fee, what is the amount payable to the bank on July 14? a. $51,000 b. $51,020

Answer 1

Answer for question 5 :

Maturity value = principal*[1+(Interest rate*maturity/360)]

Principal = 10000

Interest rate = 0.12

Maturity =90 days

Maturity value = 10000*[1+(0.12*90/360)] = 10300

Maturity value =10300 [option b]

As per HOMEWORKLIB RULES first question is answered

Kindly ask rest of the questions in a separate post