Varsity Press, a publisher of college textbooks, received a $70,000 promissory note at 12% ordinary interest for 60 days from one of its customers, Reader’s Choice Bookstores. After 20 days, Varsity Press discounted the note at the Grove Isle Bank at a discount rate of 14.5%. The note was made on March 21. What was the maturity date of the note?
14. Varsity Press, a publisher of college textbooks, received a $70,000 promissory note at 12% ordinary interest for 60 days from one of its customers, Reader’s Choice Bookstores. After 20 days, Varsity Press discounted the note at the Grove Isle Bank at a discount rate of 14.5%. The note was made on March 21. What was the maturity date of the note? (Points : 2)
15. Using the scenario from the previous question, calculate the maturity value of the note. (Points : 2)
16. What was the discount date of the note from the previous question? (Points : 2)
may 20th
To determine the maturity date of the note, we need to calculate the total number of days from the date the note was made (March 21) to the maturity date.
Step 1: Calculate the number of days from March 21 to April 20 (20 days).
March has 31 days, so subtract 31 from the total number of days from March 21. Therefore, March 21 to April 20 is 20 days.
Step 2: Calculate the remaining number of days after April 20 until the maturity date of the note.
The total term of the note is 60 days, and we have already accounted for 20 days. Therefore, the remaining number of days is 60 - 20 = 40 days.
Step 3: Add the remaining 40 days to April 20 (the date after 20 days).
April has 30 days, so add 40 days to April 20. Therefore, the maturity date of the note is April 20 + 40 days = May 30.
Thus, the maturity date of the note is May 30.
To find the maturity date of the promissory note, we need to calculate the remaining days until maturity after 20 days.
The total term of the note is 60 days, and after 20 days, there are 60 - 20 = 40 days remaining until maturity.
To calculate the maturity date, we need to know the start date. According to the information given, the note was made on March 21.
To find the maturity date, we can follow these steps:
1. Start with the initial date, which is March 21.
2. Add the remaining days until maturity (40 days) to the initial date.
3. Count forward 40 days from March 21 to find the maturity date.
Let's perform the calculation:
Starting from March 21, we add 40 days to it:
March 21 + 40 days = May 1
Therefore, the maturity date of the promissory note is May 1.