A business accepts a 12 percent, $47,000 note due in three years. Assuming simple interest, how much will the business receive when the note falls due?
A) $52,640
B) $63,920
C) $58,280
D) $47,000

Question

Quizplus · Accepted Answer

The interest is calculated as Principal x Rate x Time = $47,000 x 0.12 x 3 = $16,920. The total amount received is the principal plus interest: $47,000 + $16,920 = $63,920.

A Business Accepts a 12 Percent, $47,000 Note Due in Three