Douglas Company has a $60,000 note that carries an annual interest rate of 10%.If the amount of the total interest on the note is equal to $4,500, then what is the duration of the note in months?
A)6 months
B)4 months
C)12 months
D)9 months

Question

Quizplus · Accepted Answer

The total interest is calculated as Principal x Rate x Time. Here, $60,000 x 10% x (Time/12) = $4,500. Solving for Time gives 9 months.

Douglas Company Has a $60,000 Note That Carries an Annual