On november 1, gentle company received a $3,000, 6%, three-month note receivable. the cash to be received by gentle company when the note becomes due is:

The answer is $3,045.

To solve:

Find first the interest.

Interest = Principal x Interest Rate x Time

I = $3000 *.06 * (90/360)

= $3000 * 0.015

= $45

$45 is the interest.

Add the interest to the principal to get the maturity value.

Maturity Value = Interest + Principal

MV = $45 + $3000

= $3045