A company gives a $40,000, six-month note at the bank at 8%. How much will the company pay the bank at maturity?

Name: A company gives a $40,000, six-month note at the bank at 8%. How much will the company pay the bank at maturity?
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Question

Quizplus · Accepted Answer

The interest on the note for six months is calculated as $40,000 * 8% * (6/12) = $1,600. Therefore, at maturity, the company will pay the original amount plus interest, which is $40,000 + $1,600 = $41,600.

A Company Gives a $40,000, Six-Month Note at the Bank