Millionaires Bank accepts a promissory note for $4,000 from a customer on February 1, to be repaid in eight months plus 8% interest. The interest due on the note is: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)
A) $213.
B) $320.
C) $107.
D) $160.

Question

Quizplus · Accepted Answer

Interest = Principal x Rate x Time= $4,000 x 8% x 8/12= $4,000 x 0.08 x 2/3= $213.33= $213 (rounded to the nearest dollar)

Millionaires Bank Accepts a Promissory Note for $4,000 from a Customer