Question

Duerr Company makes a $79,000, 30-day, 12% cash loan to Ryan Co. The note and interest to be collected at maturity is:

Answer 1

The maturity value is "$79790".

Step-by-step explanation:

The given values are:

Principal

= $79,000

Time

= 30/360

Rate

= 12%

The interest on the cash loan to Ryan and Co will be:

=
`79000* 12 \ percent* (30)/(360)`

=
`790` ($)

Maturity value

=
`Principal* (1+rate* time)`

=
`79000* (1+(12 \ percent* (30)/(360) )`

=
`79000* 1.0100`

=
`79790`