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On Aprilâ 1, 2017, Banne Services received a 9â-month note for $ 13 comma 000 at 11â%. Calculate the amount of interest due at maturity.â (Round any intermediate calculations to two decimalâ places, and your final answer to the nearestâ dollar.

User Dehli
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3 votes

Answer:

$1,073

Step-by-step explanation:

The computation of the interest due is shown below"

= Total amount borrowed × interest rate × number of months ÷ total months in a year

= $13,000 × 11% × 9 months ÷ 12 months

= $1,073

The five months are calculated from April 1 to December 31. We assume the books are closed on December 31.

Simply we apply the simple interest formula so that the correct amount can come

User Lacefarin
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