Question

Question 33 2.5 pts

The basic formula for calculating the interest on a note is:

Interest = Principal × Rate/ Time.

Interest = (Principal × Rate) - Time.

Interest = Principal × Rate × Time.

Interest = (Principal × Time) + Rate.

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Question 34 2.5 pts

Interest calculated for one year on a $8,000, 6% promissory note is:

some other amount.

$480.

$48.

$4.80.

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Question 35 2.5 pts

Interest on a $5,000, 15% promissory note for six months is:

$375.

$3,750.

$3.75.

$37.50.

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Question 36 2.5 pts

In calculating interest on a note, it is NOT necessary to take which of the following into consideration?

The length of the note

The principal

The payee

The interest

Answer 1

Question 33 2.5 pts

The basic formula for calculating the interest on a note is:

So answer is c) Interest = Principal × Rate × Time.

Question 34 2.5 pts

Interest calculated for one year on a $8,000, 6% promissory note is:

Interest expense = 8000*6% = 480

So answer is b) $480

Question 35 2.5 pts

Interest on a $5,000, 15% promissory note for six months is:

Interest = 5000*15%*6/12 = $375

So answer is a) $375

Question 36 2.5 pts

In calculating interest on a note, it is NOT necessary to take which of the following into consideration?

So answer is c) The payee