The interest on a $50,000 note at 12% for 60 days is:

Question

Quizplus · Accepted Answer

The formula to calculate simple interest is:

Interest = (Principal x Rate x Time) / 100

where Principal is the amount of money borrowed, Rate is the interest rate per year and Time is the time period in years.

To calculate the interest on a $50,000 note at 12% for 60 days, we need to convert the time period into years.

60 days = 60/365 years (approx)

Substituting the values in the formula:

Interest = (50,000 x 12 x 60/365) / 100

Interest = $986.30

Therefore, the correct answer is D) $986.30.

The Interest on a $50,000 Note at 12% for 60