The interest on a $5,000, 7%, 1-year note receivable is

Name: The interest on a $5,000, 7%, 1-year note receivable is
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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 receivable, Rate is the interest rate, and Time is the time period in years.

Plugging in the given values:

Interest = $5,000 x 0.07 x 1

Interest = $350

Therefore, the interest on the note receivable is $350. Choice B is the correct answer.

The Interest on a $5,000, 7%, 1-Year Note Receivable Is