Asked by Jerry Kpasie on Jul 05, 2024
Verified
Interest on a $3,000, 5% promissory note for six months is:
A) $75.
B) $7.50.
C) $750.
D) $0.75.
Promissory Note
A financial document in which one party promises to pay another party a specified sum of money at a specified date or on demand.
- Ascertain interest on promissory notes by leveraging the fundamental interest formula.
Verified Answer
KL
Kevin LeonardJul 07, 2024
Final Answer :
A
Explanation :
Interest = Principal × Rate × Time = $3,000 × 5% × 0.5 (since 6 months is half a year) = $75.
Learning Objectives
- Ascertain interest on promissory notes by leveraging the fundamental interest formula.