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The total amount of simple interest on a $6,000 note payable for 3 years at 11%...

The total amount of simple interest on a $6,000 note payable for 3 years at 11% is

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Answer #1

Simple interest :

  • Simple interest is a quick method of calculating interest which will be charged on a loan or notes payable.
  • It can be calculated by multiplying daily interest rate by principal by the number of days that elapse between the payments.

Formula to calculate the simple interest = PTR /100

Where P stands for = Principal amount

T stands for = Time period

R stands for = Rate of interest

Therefore, for the given question

Total amount of simple interest = 6000*3*11/100

= $ 1,980.

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