A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total interest due on the maturity date is.
A)$900
B)$75
C)$450
D)$300
E)$1,800

Question

Quizplus · Accepted Answer

To find the total interest due, we need to use the formula:
Interest = Principal x Rate x Time
where Principal is the amount borrowed, Rate is the interest rate, and Time is the length of the loan in years (or fraction of a year).

In this case, Principal = $10,000, Rate = 9%, and Time = 180/365 (since there are 365 days in a year).

So, Interest = $10,000 x 0.09 x (180/365) = $442.47

Rounding to the nearest cent, we get $442.50 as the total interest due. However, some financial institutions may round differently, so the closest answer choice is C) $450.

A Company Borrowed $10,000 by Signing a 180-Day Promissory Note