Interest calculated for one year on a $8,000,6% promissory note is:
A)$4.80.
B)$480.
C)$48.
D)some other amount.

Name: Interest calculated for one year on a $8,000,6% promissory note is: A)$4.80. B)$480. C)$48. D)some other amount.
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Question

Quizplus · Accepted Answer

To calculate the interest on a promissory note, you multiply the principal amount ($8,000) by the interest rate (6%) and the time period (1 year). 
$8,000 x 0.06 x 1 = $480. 
Therefore, the answer is B.

Interest Calculated for One Year on a $8,000,6% Promissory Note