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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 71
Find the date due, the amount of interest (rounded to the nearest cent if necessary), and the maturity value. (See Example.)
Finding Due Date, Interest, and Maturity Value
Find the due date, interest, and maturity value for a $600,000 loan made to Benson Automotive on July 31 for 7 months at 7.5% interest.
Quick TIP
Do not convert the period of a loan from months to days to find the due date.
SOLUTION
Interest and principal are due 7 months from July 31 or February 31, which does not exist. Since February has only 28 days (unless it is a leap year), interest and principal are due on the last day of February, or February 28. If it were a leap year, the maturity value would be due on February 29.
A total of $626,250 must be repaid on February 28.
Finding Due Date, Interest, and Maturity Value
Find the due date, interest, and maturity value for a $600,000 loan made to Benson Automotive on July 31 for 7 months at 7.5% interest.
Quick TIP
Do not convert the period of a loan from months to days to find the due date.
SOLUTION
Interest and principal are due 7 months from July 31 or February 31, which does not exist. Since February has only 28 days (unless it is a leap year), interest and principal are due on the last day of February, or February 28. If it were a leap year, the maturity value would be due on February 29.
A total of $626,250 must be repaid on February 28.
Explanation
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Verified
The following information is given as; 
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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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