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What is the total paymentrequired to pay off a promissorynote issued for $750.00 at 6%ordinary interest and a 90-dayform

What is the total paymentrequired to pay off a promissorynote issued for $750.00 at-example-1
User Buchannon
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1 Answer

5 votes

Given:

The principal amount, P = $750.00.

The rate of interest, r =6 % = 0.06.

The period of the term, t =90 days.

Required:

We need to find the total payment required to pay off a promissory note.

Step-by-step explanation:

Conver the days into years.

Divide 90 by 365, we get t =90/365.

Consider the formula to find the total payment.


A=P(1+rt)

Substitute P = 750, r =0.06, and t =90/365 in the equation.


A=750(1+0.06*(90)/(365))
A=761.25

Final answer:

The total payment required to pay off a promissory

note

User MohsenJsh
by
3.9k points