Griffin Graphics accepted 7%, 60-day note for $21,500 from Chillout Plastics. What is the total interest on the note receivable?

Question

Quizplus · Accepted Answer

The total interest on the note receivable is calculated using the formula: Interest = Principal x Rate x Time. Here, the principal is $21,500, the rate is 7% (or 0.07), and the time is 60 days (or 60/365 of a year). Therefore, Interest = $21,500 x 0.07 x (60/365) = $247.40.

Griffin Graphics Accepted 7%, 60-Day Note for $21,500 from Chillout