Genuine Parts received a promissory note from a customer on March 1,2017.The face amount of the note is $8,000;the terms are 90 days and 9% interest.What amount of interest will Genuine Parts receive when the note is paid?

Question

Quizplus · Accepted Answer

To calculate the interest, we can use the simple interest formula:

Interest = Principal x Rate x Time

Here, the Principal is $8,000, the Rate is 9%, and the Time is 90/360 (since it's a 90-day note and we're calculating the interest for the entire period).

Interest = $8,000 x 9% x 90/360
Interest = $180

Therefore, the amount of interest Genuine Parts will receive when the note is paid is $180.

Genuine Parts Received a Promissory Note from a Customer on March