Question

Determine the interest on the following notes: (a) $5,000 at 6% for 90 days. (b) $800 at 9% for 5 months. (c) $6,000 at 8% for 60 days (d) $1,600 at 7% for 6 months

Answer 1

a. Notes Value = 5000

Interest = 6%

Days/Months = 90 Days

Months = 3

Annual Interest= 5000*6/100

Annual Interest = $300

Interest =300*3/12

Interest = $75

b. Notes Value = 800

Interest = 9%

Days/Months = 5 Months

Months = 5

Annual Interest = 800*9/100 = $72

Interest =72*5/12 = $30

c. Notes Value = 6000

Interest = 8%

Days/Months = 60 Days

Months = 2

Annual interest = 6000*8/100 = $480

Interest = 480*2/12

Interest = $80