A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total to be paid at maturity of the note is: (Use 360 days a year.)

A) $10,450
B) $10,900
C) $10,075
D) $11,800
E) $10,300

Question

A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total to be paid at maturity of the note is: (Use 360 days a year.)A) $10,450B) $10,900C) $10,075D) $11,800E) $10,300

Jean-Bernard Orival · Accepted Answer

Final Answer : A, Explanation :  The formula for simple interest is:Simple Interest = Principal x Rate x Timewhere time is in years.Since the time is given in days, we need to convert it to years by dividing by 360:Time = 180 days ÷ 360 = 0.5 yearsPlugging in the values:Simple Interest = $10,000 x 0.09 x 0.5 = $450The total to be paid at maturity is:Total = Principal + Simple Interest = $10,000 + $450 = $10,450Therefore, the answer is A.

A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total to be paid at maturity of the note is: (Use 360 days a year.)

A) $10,450
B) $10,900
C) $10,075
D) $11,800
E) $10,300

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Learning Objectives

Related questions

A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total to be paid at maturity of the note is: (Use 360 days a year.) A) $10,450B) $10,900C) $10,075D) $11,800E) $10,300

Definitions

Learning Objectives

Learning Objectives

Related questions

A company borrowed $10,000 by signing a 180-day promissory note at 9%.The total to be paid at maturity of the note is: (Use 360 days a year.)

A) $10,450
B) $10,900
C) $10,075
D) $11,800
E) $10,300