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6 July, 21:39

1.

A note with a face value of $145,000 is made on December 10.

The note is for 75 days and carries interest of 13.5%.

A partial payment of $55,000 is made on January 8.

Find the amount due on the maturity date of the note.

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  1. 6 July, 21:47
    0
    The answer is $93,112.96.

    We first need to find how the number of days from the date of the note till the partial payment. December 31 - 10 days = 21, then add 8 January = 29 days

    Next, we will be using this formula - A = p (1 + rt) in getting the amount due. p represents the face value; r for the rate; and t for the time. Subtract the partial payment after.

    A = p (1 + rt)

    A = 145,000 [1 + (13.5%x (29/365)) ]

    A = 146,555.27

    A = 146,555.27 - 55,000

    A = 91,555.27

    Compute for the remaining days to maturity. 75 days - 29 days = 46 days Use the same formula using the new A and t

    A = 91,555.27 [1 + (13.5%x (46/365)) ]

    A = $93,112.96 due after 75 days
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