Asked by Kaitlyn Simon on Jun 21, 2024
Verified
The formula for computing interest on a note is: Principal of the note × Annual interest rate × Time expressed in fraction of year.
Annual Interest Rate
The percentage increase in the amount of money owed as interest on a loan or investment, calculated on an annual basis.
Principal
The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or dividends.
- Comprehend the methods for calculating and recording interest on notes receivable.
Verified Answer
SM
Sojan ManuelJun 28, 2024
Final Answer :
True
Explanation :
This is the correct formula for computing interest on a note.
Learning Objectives
- Comprehend the methods for calculating and recording interest on notes receivable.
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