A business accepts a 12 percent,$19,000 note due in three years.Assuming simple interest,how much will the business receive when the note falls due?

Question

Quizplus · Accepted Answer

The simple interest formula is I = PRT, where P is the principal ($19,000), R is the rate (12% or 0.12), and T is the time (3 years). The interest is $19,000 * 0.12 * 3 = $6,840. The total amount received is the principal plus interest: $19,000 + $6,840 = $25,840.

A Business Accepts a 12 Percent,$19,000 Note Due in Three