Megan Farms received a promissory note from a customer on March 1,2014.The face amount of the note is $8,000;the terms are 90 days and 9% interest. What is the total amount of interest that Megan Farms will receive when the note is paid?

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: (P x R x T) / 360 
where P is the principal amount ($8,000), R is the interest rate (9%), and T is the time (90 days).

So the interest on the note is: 
(8,000 x 0.09 x 90) / 360 = $180

Therefore, the total amount of interest that Megan Farms will receive when the note is paid is $180.

Megan Farms Received a Promissory Note from a Customer on March