The interest charged on a $90,000, 3-month note payable, at the rate of 8%, would be

Question

Quizplus · Accepted Answer

Interest can be calculated using the formula:

Interest = Principal x Rate x Time

Where:
Principal = $90,000
Rate = 8%
Time = 3/12 (in years)

Plugging in the values, we get:

Interest = $90,000 x 8% x 3/12
Interest = $1,800

Therefore, the interest charged on a $90,000, 3-month note payable, at the rate of 8% would be $1,800. Option C is correct.

The Interest Charged on a $90,000, 3-Month Note Payable, at the Rate