Genuine Parts received a promissory note from a customer on March 1, 2015.The face amount of the note is $8,000; the terms are 90 days and 9% interest.What is the total amount of interest that Genuine Parts will receive when the note is paid?

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Quizplus · Accepted Answer

The interest on the note is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $8,000, Rate = 9% (or 0.09), and Time = 90/365 (since interest is typically calculated on a 365-day basis). Therefore, Interest = $8,000 x 0.09 x (90/365) = $180.

Genuine Parts Received a Promissory Note from a Customer on March