Interest on a nine-month,9 percent,$4,000 note is calculated by multiplying $4,000 * 9/100 * 9/12.

Question

Quizplus · Accepted Answer

To calculate the interest on a note, we need to use the formula:

Interest = Principal x Rate x Time

Here, the principal is $4,000, the rate is 9%, and the time is 9 months. However, the rate is an annual rate, so we need to convert it to a monthly rate by dividing it by 12. Thus, the calculation becomes:

Interest = $4,000 x 9/100 x 9/12 = $270

This matches the calculation given in the statement, so the answer is true.

Interest on a Nine-Month,9 Percent,$4,000 Note Is Calculated by Multiplying