Interest due on a $21,000, 11%, 10-month note is: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)
A) $1,925
B) $2,310
C) $22,925
D) $21,000

Question

Quizplus · Accepted Answer

The interest on the note can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $21,000, Rate = 11% (or 0.11 when expressed as a decimal), and Time = 10/12 year (since it's for 10 months). So, Interest = $21,000 × 0.11 × 10/12 = $1,925 (rounded to the nearest dollar).

Interest Due on a $21,000, 11%, 10-Month Note Is: (Do