The interest on a $9,000, 6%, 90-day note receivable is

Question

Quizplus · Accepted Answer

To calculate the interest, we use the formula: 
Interest = Principal x Rate x Time 
where Principal is the amount of the note, Rate is the interest rate per period, and Time is the length of the period in days divided by the number of days in a year.

In this case, the Principal is $9,000, the Rate is 6%, and the Time is 90/360 (90 days divided by 360 days in a year) = 0.25.

So, Interest = $9,000 x 6% x 0.25 = $135.

Therefore, the answer is Choice A.

The Interest on a $9,000, 6%, 90-Day Note Receivable Is