Asked by Dan Francis Rodriguez on Apr 26, 2024
Verified
The basic formula for calculating the interest on a note is:
A) Interest = Principal × Rate × Time.
B) Interest = (Principal × Rate) - Time.
C) Interest = (Principal × Time) + Rate.
D) Interest = Principal × Rate/ Time.
Basic Formula
Typically refers to the accounting equation: Assets = Liabilities + Equity.
Calculating Interest
The process of determining the monetary charge for borrowing money or the return on investment for savings, typically through a predetermined formula.
- Conduct interest computations for promissory notes using the basic interest formula.
Verified Answer
TG
Taylor GainesApr 28, 2024
Final Answer :
A
Explanation :
The basic formula for calculating the interest on a note is Interest = Principal × Rate × Time, which is a straightforward calculation of interest earned or paid over a certain period.
Learning Objectives
- Conduct interest computations for promissory notes using the basic interest formula.