Asked by
Alejandro Chavez
on Nov 14, 2024
Verified
When calculating interest on a promissory note with the maturity date stated in terms of days the
A) maker pays more interest if 365 days are used instead of 360.
B) maker pays the same interest regardless if 365 or 360 days are used.
C) payee receives more interest if 360 days are used instead of 365.
D) payee receives less interest if 360 days are used instead of 365.
Promissory Note
A financial document in which one party promises in writing to pay a determinate sum of money to another party under specified terms.
Interest Calculation
The process of determining the amount of interest owed or earned over a specific period, based on the principal amount and the rate of interest.
- Compute the interest payable on notes receivable.
Verified Answer
AD
Learning Objectives
- Compute the interest payable on notes receivable.