Copyright © 2008, The McGraw-Hill Companies, Inc.
A. Promissory Notes
For each of the following promissory notes or situations, identify the loan’s (a) date, (b) face value, (c) maturity date,
(d) maturity value, and (e) term.
- Tim borrowed $12,000 on January 17, 2004. He signed a note, agreeing to repay a total of $12,800 three months
later, on April 17, 2004. - The Keuka Park Federal Credit Union loaned Sandy $500 on April 1, 2006. She agreed to repay a total of $510 thirty
days later, on May 1, 2006.
3.
I, Jerry Wang, acknowledge a loan of $5,350 made to me by
Lisa Bryer on July 1, 2006. I agree to repay this loan together
with $150 in interest in ninety days, on September 29, 2006.
4.
Hottenkold Indoor Comfort Company hereby acknowledges a
loan of $75,000 made on January 1, 2006, and to satisfy
this debt agrees to repay the Third National Bank of
Branchport $80,000 on January 1, 2007.
B. Finding Terms within a Calendar Year
- Rarefi ed Air Flight Schools signed a promissory note on June 11, 2005, with a maturity date of November 30, 2005.
Find the term of the note. - Christopher loaned his friend Evan $750 on March 17, 2006. Evan signed a note, agreeing to pay the loan back (with
interest) on December 31, 2006. Find the term of the note. - On September 3, 2006 a promissory note that Gilles had signed on February 12 of the same year came due. Find the
term of the note.
EXERCISES 1.4
57 days
10/14/01 1/1/02 2/26/03
78 days 365 days
2001 2002 2003
1/1/03
78 days
0 days
So we can conclude that the note was signed on October 14, 2001.
Copyright © 2008, The McGraw-Hill Companies, Inc.
Exercises 1.4 39