The interest on a €5,000, 6%, 90-day note receivable is

Name: The interest on a €5,000, 6%, 90-day note receivable is
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Question

Quizplus · Accepted Answer

The formula for interest on a note receivable is:
Interest = principal × rate × time
where principal is €5,000, rate is 6% (0.06 as a decimal), and time is 90/360 (since there are 360 days in a year and the note is for 90 days). Plugging in these values, we get:
Interest = €5,000 × 0.06 × (90/360)
Interest = €75
Therefore, the correct answer is C, €75.

The Interest on a €5,000, 6%, 90-Day Note Receivable Is