Question

On June 8, Williams Company issued an $82,039, 7%, 120-day note payable to Brown Industries. Assuming a 360-day year for your calculations, what is the maturity value of the note

Answer 1

$83,953

Step-by-step explanation:

Calculation to determine the maturity value of the note

Maturity value=$82,039+($82,039*0.07*120/360)

Maturity value=$82,039+$1,914

Maturity value=$83,953

Therefore the maturity value of the note is $83,953