Asked by Landrie Pierce on May 16, 2024
Verified
Compute the maturity date for the note.
A) October 8
B) October 7
C) November 8
D) November 7
E) November 6
Maturity Date
The specified date on a financial instrument when the principal amount is due to be paid back or when an investment reaches its full value.
90-Day Note
A short-term debt obligation that matures or is due to be paid 90 days after its issuance.
- Analyze and keep a record of transactions regarding notes receivable, including the calculation of interest and handling of notes not honored.
Verified Answer
AR
Andrew ReillyMay 23, 2024
Final Answer :
B
Explanation :
The maturity date is calculated by adding the note's term (90 days) to its issue date (July 9). July has 22 days remaining (31-9), August has 31 days, and September has 30 days. By counting 90 days from July 9, we reach October 7 as the maturity date.
Learning Objectives
- Analyze and keep a record of transactions regarding notes receivable, including the calculation of interest and handling of notes not honored.
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