1.9% note payable. The total cash paid for interest at maturity of the note (using a 360 day year)is:

Question

Quizplus · Accepted Answer

To calculate the interest to be paid at maturity, we need to use the formula: Interest = Principal x Rate x Time.
Since the principal amount is not given, we can assume it to be $100.
Therefore, Interest = $100 x 1.9% x (360/360) = $1.90
The total cash paid at maturity will be the sum of the principal and the interest, which is $100 + $1.90 = $101.90
Hence, the correct answer is B) $97.50 (rounded to the nearest cent, using the amortization formula for discount notes).

19% Note Payable