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Promissory note - interest rate and maturity value

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Presented below are data on a promissory note. Determine the Maturity date and the total Interest. Please provide step-by-step instructions to figure the correct total interest.

Date of Maturity Annual Total
Note Terms Date Principal Interest Rate Interest

April 1 60 days May 31 $60,000 9% $6,675

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Solution Summary

Step by step explanation and calculations showing how to determine the maturity date and the total interest on a promissory note

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Solution:

INTEREST
1. Interest rates are usually quoted on an annual basis. This means that once a debt instrument is not held for the entire year, interest must be calculated for the period that the note is actually ...

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