The interest charged on a $70,000 note payable, at the rate of 6%, on a 60-day note would be
A) $4,200.
B) $2,100.
C) $1,050.
D) $700.

Question

Quizplus · Accepted Answer

The interest on a note is calculated using the formula: Interest = Principal x Rate x Time. Here, the principal is $70,000, the rate is 6% (or 0.06), and the time is 60 days out of 365 days in a year. So, Interest = $70,000 x 0.06 x (60/365) = $700.

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