Solution-Compute the interest on each note using a 360-day

Compute the interest on each note using a 360-day year

Reference no: EM132354221

ASSIGNMENT

Note: Actual interest is based on a 365-day year, however, to help you learn to estimate interest, also try computing interest using the 6%, 60-day Method, which is based on a 360-day year. Remember, the interest formula is: Principal' Rate' Time. The maturity value formula is: Principal + Interest = Maturity Value. The principal is also called the face, and time may be referred to as the term.

Problem : Compute interest.

Compute the interest on each note using a 360-day year and then computed interest again using a 365-day year. (Try to use the 6%, 60-day Method for the 360-day year amounts.)

	Principal (Face)	Rate	Time (Term)	Interest (360-day year)	Interest (365-day year)
A.	51,600	6%	40 days
B.	1,200	7%	60 days
C.	3,600	6%	90 days
D.	640	10%	60 days
E.	1,952	8%	60 days
F.	2,000	5%	60 days

Computations

Interest Computations: Interest I2 Principal Rate X Time

Reference no: EM132354221

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Compute the interest on each note using a 360-day year

Reference no: EM132354221

Reference no: EM132354221

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