Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with a face value of $230,000.1. On what date does this note mature? (Assume that February has 28 days) A. May 25, 2018. B. May 26, 2018. C. May 27, 2018. D. May 28, 2018. E. May 30, 2018.

Question

Daniela Adkins

Business

3 July, 03:09

Keesha Co. borrows $230,000 cash on December 1, 2017, by signing a 180-day, 10% note with a face value of $230,000.1. On what date does this note mature? (Assume that February has 28 days) A. May 25, 2018. B. May 26, 2018. C. May 27, 2018. D. May 28, 2018. E. May 30, 2018.

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Answers (1)

Know the Answer?

Urijah Johnson · Answer 1

option (E) May 30, 2018.

Explanation:

Data provided in the question:

Amount borrowed = $230,000

Date on which amount was borrowed = December 1, 2017

Maturity period = 180 days

Now,

Month number of days Days left

December (2017) 30 180 - 30 = 150

[note's issue date is omitted]

January (2018) 31 150 - 31 = 119

February (2018) 28 119 - 28 = 91

March (2018) 31 91 - 31 = 60

April (2018) 30 60 - 30 = 30

Hence,

The bonds will mature on 30 days after the month of April i. e on May 30, 2018

Hence,

The correct answer is option (E) May 30, 2018.