The interest charged on a $100000 note payable at the rate of 6% on a 2-month note would be
A) $6000.
B) $3000.
C) $1500.
D) $1000.

Question

Quizplus · Accepted Answer

The interest on a note payable is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $100,000, Rate = 6% (or 0.06 as a decimal), and Time = 2/12 year (since it's for 2 months and there are 12 months in a year). So, Interest = $100,000 x 0.06 x 2/12 = $1,000.

The Interest Charged on a $100000 Note Payable at the Rate