Final answer:
The total interest on the note is not $640.
Step-by-step explanation:
The question is asking if a company borrowed $16,000 by signing a 120-day promissory note at 12%, would the total interest on the note be $640.
To calculate the total interest, we can use the formula: Total Interest = Principal x Interest Rate x Time.
In this case, the principal is $16,000, the interest rate is 12% (or 0.12 as a decimal), and the time is 120 days (or 120/365 as a fraction of a year).
Plugging in these values into the formula, we get: Total Interest = $16,000 x 0.12 x (120/365) = $210.52
Therefore, the statement 'The total interest on the note is $640' is False.