A company receives a 10%, 90-day note for $1,500. The total interest due on the maturity date is:

Name: A company receives a 10%, 90-day note for $1,500. The total interest due on the maturity date is:
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Question

Quizplus · Accepted Answer

The total interest due on the maturity date can be calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $1,500, Rate = 10% (or 0.10), and Time = 90/365 (since it's a 90-day note and interest rates are annual). So, Interest = $1,500 x 0.10 x (90/365) = $37.50.

A Company Receives a 10%, 90-Day Note for $1,500