A company receives a 10%,120-day note for $1,500.The total interest due on the maturity date is: (Use 360 days a year.)
A)$50.00.
B)$150.00.
C)$75.00.
D)$37.50.
E)$87.50.

Name: A company receives a 10%,120-day note for $1,500.The total interest due on the maturity date is: (Use 360 days a year.) A)$50.00. B)$150.00. C)$75.00. D)$37.50. E)$87.50.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest = Principal * Rate * Time= 1500 * 10% * 120/360= 1500 * 0.1 * 1/3= 1500 * 0.1 * 0.3333= 50

A Company Receives a 10%,120-Day Note for $1,500