Computers "R" Us borrowed $40,000 for 2 years at 7%.The face value of the note is $45,600.

Question

Quizplus · Accepted Answer

The face value of the note is the amount borrowed plus the interest, so the amount borrowed would be less than the face value. Using the simple interest formula I = Prt, we can calculate the interest as 40,000 * 0.07 * 2 = $5,600. Therefore, the amount borrowed would be $40,000 and the total amount due would be $45,600 ($40,000 + $5,600 in interest).

Computers "R" Us Borrowed $40,000 for 2 Years at 7