Bob Marby purchased a TV from Tryton Sales and signed a 2-year, 8% promissory note for $1,000. What is the amount required to pay off the note if it accrues simple interest over the term of the loan?
A) $840
B) $1,080
C) $1,160
D) $920

Question

Quizplus · Accepted Answer

The simple interest is calculated as Principal x Rate x Time = $1,000 x 0.08 x 2 = $160. The total amount to pay off the note is the principal plus interest: $1,000 + $160 = $1,160.

Bob Marby Purchased a TV from Tryton Sales and Signed