Interest due on a $7,000, 10%, 9-month note is:
A) $525.
B) $7,000.
C) $7,525.
D) $6,475.

Name: Interest due on a $7,000, 10%, 9-month note is: A) $525. B) $7,000. C) $7,525. D) $6,475.
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Question

Quizplus · Accepted Answer

The interest on a note is calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $7,000, Rate = 10% (or 0.10), and Time = 9/12 year (since it's for 9 months). So, Interest = $7,000 × 0.10 × (9/12) = $525.

Interest Due on a $7,000, 10%, 9-Month Note Is