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A company receives a 5%, 90-day note for $3,600. The total interest due on the maturity date is: (Use 360 days a year.)

User VIBrunazo
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1 Answer

4 votes

Answer:

$45

Step-by-step explanation:

The total interest due on note can be calculated by multiplying the Value of note with interest rate for required days. The formula for interest should be

Total Interest due = Value of Note x Interest Rate x 90/360

DATA

Value of note = $3,600

Interest rate = 5%

Number of days = 90

Total days n a year = 360

Solution

Total interest due = 3,600 x 5% x 90/360

Total interest due = $45

User Manuel Brnjic
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