Question

molar world borrowed $60,000 by signing a 60-day, 5% note payable from its bank. compute the total cash payment due on the notes maturity date

Answer 1

The future value of a loan of $P at r% interest rate for t years is given by:


`FV=P(1+rt)`

Given that Molar world borrowed $60,000 by signing a 60-day, 5% note payable from its bank.

The total cash payment due on the notes maturity date is given by:


`FV=60,000\left(1+0.05\left( (60)/(360) \right)\right) \\ \\ =60,000(1+0.0083)=60,000(1.0083) \\ \\ =\bold{\$60,500}`