The interest charged on a $400,000, 90-day note payable, at the rate of 8%, would be

Question

Quizplus · Accepted Answer

The interest on the note payable can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $400,000, Rate = 8% (or 0.08 as a decimal), and Time = 90/365 (since interest rates are annual and there are 365 days in a year). Therefore, Interest = $400,000 × 0.08 × (90/365) = $7,945.21, which rounds to approximately $8,000.

The Interest Charged on a $400,000, 90-Day Note Payable, at the Rate