Question

On the maturity date of a $6,600, 9-month, 12% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower’s check?

Answer 1

$7194

Explanation:

Given the following

Principal = $6600

Time = 9months = 9/12 year

Rate R = 12%

Interest = PRT/100

Interest = 6600*9/12 * 12/100

Interest = 66*9

Interest = $594

Amount on the borrowers check = principal + interest

Amount on the borrowers check = 6600 + 594

Amount on the borrowers check = $7194