Acme,Inc.accepted a promissory note from NadirCo,who promised to pay Acme $5,000 plus 6% interest at the end of four months.What is the amount of interest that will be paid at the end of the four-month period?

Question

Quizplus · Accepted Answer

The interest can be calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $5,000, Rate = 6% (or 0.06 as a decimal), and Time = 4/12 year (since there are 12 months in a year). So, Interest = $5,000 x 0.06 x (4/12) = $100.

Acme,IncAccepted a Promissory Note from NadirCo,who Promised to Pay Acme