The interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be
A) $4,200.
B) $2,100.
C) $1,050.
D) $700.

Question

Quizplus · Accepted Answer

The interest for a 90-day note is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $70,000, Rate = 6% (or 0.06), and Time = 90/365 (since it's a 90-day note). Therefore, Interest = $70,000 x 0.06 x (90/365) = $1,050.

The Interest Charged on a $70,000 Note Payable, at the Rate