Using a 360-day year, interest calculated for 90 days on a $9,000, 6% promissory note is:
A) $135.
B) $540.
C) $405.
D) some other amount.

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $9,000, Rate = 6% (or 0.06 as a decimal), and Time = 90/360 (since the interest rate is annual and we're calculating for 90 days out of a 360-day year). So, Interest = $9,000 × 0.06 × (90/360) = $135.

Using a 360-Day Year, Interest Calculated for 90 Days on a $9,000