Duerr Company makes a $60,000,60-day,12% cash loan to Ryan Co.The note and interest to be collected at maturity is: $\bold{\text{(Use 360 days a year.) }}$

A) $60,000.
B) $1,200.
C) $61,200.
D) $58,800.
E) $67,200.

Question

Duerr Company makes a $60,000,60-day,12% cash loan to Ryan Co.The note and interest to be collected at maturity is:

\bold{\text{(Use 360 days a year.) }}

A) $60,000.
B) $1,200.
C) $61,200.
D) $58,800.
E) $67,200.

Srishty Dagar · Accepted Answer

Final Answer : C, Explanation :  To calculate the interest, we can use the simple interest formula:Interest = Principal × Rate × TimePrincipal = $60,000Rate = 12% per yearTime = 60 days ÷ 360 days/year = 1/6 yearInterest = $60,000 × 0.12 × 1/6 = $1,200Therefore, the total amount to be collected at maturity is:$60,000 (principal) + $1,200 (interest) = $61,200So, the best choice is C.

Duerr Company makes a $60,000,60-day,12% cash loan to Ryan Co.The note and interest to be collected at maturity is: $\bold{\text{(Use 360 days a year.) }}$

A) $60,000.
B) $1,200.
C) $61,200.
D) $58,800.
E) $67,200.

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Duerr Company makes a $60,000,60-day,12% cash loan to Ryan Co.The note and interest to be collected at maturity is: (Use 360 days a year.) \bold{\text{(Use 360 days a year.) }}(Use 360 days a year.) A) $60,000.B) $1,200.C) $61,200.D) $58,800.E) $67,200.

Definitions

Learning Objectives

Learning Objectives

Related questions

Duerr Company makes a $60,000,60-day,12% cash loan to Ryan Co.The note and interest to be collected at maturity is: $\bold{\text{(Use 360 days a year.) }}$

A) $60,000.
B) $1,200.
C) $61,200.
D) $58,800.
E) $67,200.