A $10,000 note that has a stated interest rate of 10% and is due in six months would have interest of $1,000.Interest = face value ($10,000)× annual interest rate (10%)× fraction of year (6/12)= $500.

Question

Quizplus · Accepted Answer

The correct calculation of interest for a $10,000 note at a 10% annual interest rate for 6 months is indeed $500, not $1,000, as the formula correctly applies the fraction of the year (6/12) to the annual rate.

A $10,000 Note That Has a Stated Interest Rate of 10