question archive A firm has directly placed an issue of commercial paper that has a maturity of 60 days
A firm has directly placed an issue of commercial paper that has a maturity of 60 days
Subject:AccountingPrice:9.82 Bought3
A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue sold for
P980,000 and has an annual interest rate of 12 percent. The value of the commercial paper at maturity is *
Format: 111, 111
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The answer is;
P999,600
Step-by-step explanation
Interest of commercial paper at maturity=selling price* Annual interest rate* Time of maturity
=P980,000* 0.12* 60/360
=P19600
Value of commercial paper at maturity=Interest of commercial paper at maturity+ Selling price
=P19600+P980000
=P999,600
