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7 September, 05:28

On november 1, gentle company received a $3,000, 6%, three-month note receivable. the cash to be received by gentle company when the note becomes due is:

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  1. 7 September, 06:38
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    The answer is $3,045.

    To solve:

    Find first the interest.

    Interest = Principal x Interest Rate x Time

    I = $3000 *.06 * (90/360)

    = $3000 * 0.015

    = $45

    $45 is the interest.

    Add the interest to the principal to get the maturity value.

    Maturity Value = Interest + Principal

    MV = $45 + $3000

    = $3045
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