Interest calculated for one year on a $5,000,8% promissory note is:
A)$4.
B)$40.
C)$400.
D)some other amount.

Name: Interest calculated for one year on a $5,000,8% promissory note is: A)$4. B)$40. C)$400. D)some other amount.
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Question

Quizplus · Accepted Answer

To calculate the interest on a promissory note, multiply the principal ($5,000) by the annual interest rate (8%) and the time period (1 year). 
$5,000 x 0.08 x 1 = $400. Therefore, the interest for one year on the promissory note is $400.

Interest Calculated for One Year on a $5,000,8% Promissory Note