Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa Studios signed a 60-day,10% promissory note for $7,800.If the note is dishonored,what is the amount due on the note?

Question

Quizplus · Accepted Answer

The amount due on the note is the face amount of the note plus interest. The face amount of the note is $7,800. The interest is calculated as follows:Interest = Face amount * Interest rate * TimeInterest = $7,800 * 10% * 60/360Interest = $130Therefore, the amount due on the note is $7,800 + $130 = $7,930.

Valley Spa Purchased $7,800 in Plumbing Components from Tubman Co