Douglas Company has a $51,000 note that carries an annual interest rate of 10%. If the amount of the total interest on the note is equal to $3,400, then what is the duration of the note in months?
A) 6 months
B) 4 months
C) 12 months
D) 8 months

Question

Quizplus · Accepted Answer

The total interest is calculated as Principal x Rate x Time. Here, $51,000 x 10% x (Time/12) = $3,400. Solving for Time gives 8 months.

Douglas Company Has a $51,000 Note That Carries an Annual