Calculate the interest on a 90-day, 9% note for $50,000. (Use a 360-day year to compute interest. Round your answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The interest on the note can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $50,000, Rate = 9% (or 0.09 when expressed as a decimal), and Time = 90/360 (since a 360-day year is used for the calculation). So, Interest = $50,000 × 0.09 × (90/360) = $1,125.

Calculate the Interest on a 90-Day, 9% Note for $50,000