If XYZ issued a 60 day promissory note for $40 000 at an agreed interest rate of 7% per annum,the amount of interest payable,to the nearest $,is:

Question

Quizplus · Accepted Answer

The interest payable can be calculated using the formula: Interest = Principal x Rate x Time. Here, the principal is $40,000, the rate is 7% per annum, and the time is 60/365 years. Thus, the interest is $40,000 x 0.07 x (60/365) = $460.27, which rounds to $460.

If XYZ Issued a 60 Day Promissory Note for $40