Question

**PIC INCLUDED**

What is the total payment
required to pay off a promissory
note issued for $500.00 at 10%
ordinary interest and a 180-day
term?

Answer 1

the total payment need to pay is $525

Explanation:

Given that

The amount at promissory note issued is $500

The rate of interest is 10%

And, the time period is 180 days

So, the total payment included is

= $500 + ($500 × 10% × 180 days ÷ 360 days)

= $500 + $25

= $525

hence, the total payment need to pay is $525