Taylor bank lends guarantee company $150,000 on january 1. guarantee company signs a $150,000, 8%, 9-month note. the entry made by guarantee company on january 1 to record the proceeds and issuance of the note is

We are given

P = $15,000

i = 8% per year

n = 9 months

First we convert the interest to per month

i = 8%/12 = 0.67%

And we solve for the future worth of the note

F = P (1 + i) ^n

F = 15000 (1 + 0.0067) ^9

F = $15929.12

The value of the note is $15929.12