Genuine Parts received a promissory note from a customer on March 1, 2016.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?
A) $ 60
B) $ 90
C) $180
D) $720

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $8,000, Rate = 9% per annum, and Time = 90/365 years. Thus, Interest = $8,000 x 0.09 x (90/365) = $180.

Genuine Parts Received a Promissory Note from a Customer on March