Question

On the maturity date of a $9,600, 9-month, 9% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower’s check?

Multiple Choice

• $17,376.0

• $10,464.0

• $9,600.0

• $10,248.0

Answer 1

Answer:

Interest Amount          =   Principal Amount x Rate of Interest rate x Time Period          =    $ 9,600 x 9% x 9/12          =    $ 648

Amount of the borrower’s check               = Principal Amount   + Interest               =    $ 9,600 + $ 648               =    $ 10,248

Amount of the borrower’s check =    $ 10,248

Option (d) is Correct