Question

Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa Studios signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note?

a. 130

b. 7800

c. 7930

d. 8050

e. 8130

Answer 1

Answer: Option (c) is correct.

Step-by-step explanation:

Given that,

Plumbing components costs = $7,800

Studios signed = 60 day

10% promissory note = $7,800

If the note is dishonored, interest amount due :

Interest =
`7800 * (10)/(100) * (60)/(360)`

Interest = $130

Total amount due = $7800 + $130

= $7930

∴ The amount due on the note is $7930.