Question

Presented below are data on three promissory notes. Determine the missing amounts. (Round answers for Total Interest to 0 decimal places, e.g. 825. Round annual interest rate to 0 decimal places, e.g. 15%. Use 360 days for calculation.) Principal Date of Note Maturity Date Total Interest Terms Annual Interest Rate 60 days $510,000 14 % (a) April 1 May 31 30 days 81,600 $884 (b) July 2 July 31 6 months 166,000 15 % (c) March 7 September 1

Answer 1

Answer

	Date of Note	Time	Maturity Date	Principal	Annual Interest Rate	Total Interest
(a)	April 1	60 days	May 31	510000	14%	11900
(b)	July 2	30 days	July 31	81600	13%	884
(c)	March 7	6 months	September 1	166000	15%	12450

Calculated as

Missing one

Total Interest = $510000 x 14% x 60/360= $11900

Missing Two

Interest rate =(Interest x 360/30)*100/Principal = (884*360/30)*100/81600 = 13%

Missing Three

Total interest = $166000 x 15% x 6/12= $12450

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