Use the information above to answer the following question.What is the total amount of interest on this note?
A)$900
B)$450
C)$0
D)$2,700

Question

Quizplus · Accepted Answer

The note is for $30,000 at 3% interest for one year. Therefore, the total interest on the note is 0.03 x $30,000 = $900. However, since the note was paid back early, the borrower receives a 50% discount on the interest, reducing it to 0.5 x $900 = $450.

Use the Information Above to Answer the Following Question