Problem 11-1A

Problem 11-1A - Problem 11-1A(45 minutes Locust 1 Natl Bank...

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Problem 11-1A (45 minutes) Locust Natl. Bank Fargo 1. Maturity dates Date of the note . ....................... May 19 July 8 Nov. 28 Term of the note (in days) . ...... 120 120 60 Maturity date . ............................ Sept. 16 Nov. 5 Jan. 27 2. Interest due at maturity Principal of the note. ................ $ 39,000 $120,000 $60,000 Annual interest rate . ................ 9% 8.5% 8% Fraction of year . ....................... 120/360 120/360 60/360 Interest expense . ...................... $ 1,170 $ 3,400 $ 800 3. A ccrued interest on Fargo note at the end of 2008 Total interest for note . ................................................... $ 800 Fraction of term in 2008. ................................................ 33/60 Accrued interest expense . ............................................ $ 440 4. Interest on Fargo note in 2009 Total interest for note . ................................................... $ 800 Fraction of term in 2009. ................................................ 27/60 Interest expense in 2009. ............................................... $ 360
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This note was uploaded on 11/22/2011 for the course BUSI 1002 taught by Professor Liu during the Fall '10 term at HKU.

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Problem 11-1A - Problem 11-1A(45 minutes Locust 1 Natl Bank...

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