Question

The interest on a $10,000, 8%, 1-year note receivable is

a. $10,000.
b. $800.
c. $10,800.
d. $10,080.

Answer 1

The interest on a $10,000, 8%, 1-year note receivable is $800.

Step-by-step explanation:

The interest on a $10,000, 8%, 1-year note receivable can be calculated using the formula:

Interest = Principal * Rate * Time

Where:

• Principal = $10,000
• Rate = 8% or 0.08 (convert to decimal)
• Time = 1 year

Substituting the values into the formula, we get:

Interest = $10,000 * 0.08 * 1

Interest = $800

So the correct answer is option b. $800.