On April 1, 2019, Barnes Services received a 9-month note for $12,000 at 12%. Calculate the amount of interest due at maturity. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

We can use the simple interest formula to calculate the interest due at maturity:

Interest = Principal x Rate x Time

Plugging in the given values:

Interest = $12,000 x 0.12 x (9/12) = $1,080

Therefore, the answer is D) $1,080.

On April 1, 2019, Barnes Services Received a 9-Month Note