The total interest owing on a $10,000, 4%, 3-month note receivable is

A) $100.
B) $200.
C) $400.
D) $1,200.

Question

The total interest owing on a $10,000, 4%, 3-month note receivable isA) $100.B) $200.C) $400.D) $1,200.

Shree Bhagwat · Accepted Answer

Final Answer : A, Explanation :  The interest on a note receivable is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $10,000, Rate = 4% (or 0.04 as a decimal), and Time = 3/12 year (since it's for 3 months). Thus, Interest = $10,000 x 0.04 x 3/12 = $100.

The total interest owing on a $10,000, 4%, 3-month note receivable is

A) $100.
B) $200.
C) $400.
D) $1,200.

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