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?
Maturity date is May 20th
To find the maturity date of the promissory note, we need to calculate the number of days from the date it was made until its maturity.
First, let's start with the date the note was made: March 21.
Given that the note was for a duration of 60 days, we can add 60 days to the date to determine the maturity date.
March has 31 days, so by adding 60 days, we go into May. However, we need to consider that April has 30 days, so we subtract 30 from the total of 60. This leaves us with 30 days remaining.
Since March 21 is the starting date, we add 30 days to it.
The final maturity date will be April 20.
Therefore, the maturity date of the promissory note is April 20.