The interest on a $8000 5% 90-day note receivable is
A) $100.
B) $200.
C) $300.
D) $400.

Name: The interest on a $8000 5% 90-day note receivable is A) $100. B) $200. C) $300. D) $400.
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Question

Quizplus · Accepted Answer

The interest on the note can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $8000, Rate = 5% (or 0.05 as a decimal), and Time = 90 days (or 90/360 because interest is typically calculated on a 360-day year basis). So, Interest = $8000 × 0.05 × (90/360) = $100.

The Interest on a $8000 5% 90-Day Note Receivable Is