A company borrowed $1,000 by signing a six month promissory note at 5% interest. The total amount of interest on this promissory note is $25.

Name: A company borrowed $1,000 by signing a six month promissory note at 5% interest. The total amount of interest on this promissory note is $25.
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Question

Quizplus · Accepted Answer

The formula used to calculate the total amount of interest on a promissory note is correct, and when the values are substituted, it results in $25. Therefore, the statement is true.

A Company Borrowed $1,000 by Signing a Six Month Promissory