The interest charged on a $90,000, 3-month note payable, at the rate of 8%, would be
A) $7,200.
B) $3,600.
C) $1,800.
D) $1,200.

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: Interest = Principal x Rate x Time. Here, the principal is $90,000, the rate is 8% (or 0.08), and the time is 3/12 of a year (since it's a 3-month note). So, Interest = $90,000 x 0.08 x (3/12) = $1,800.

The Interest Charged on a $90,000, 3-Month Note Payable, at the Rate