The total amount of interest calculated annually on a $7,000 promissory note payable for three years at 12% that is not compounded is
A)$280.
B)$840.
C)$2,520.
D)$8,260.

Question

Quizplus · Accepted Answer

The interest calculated annually on a promissory note without compounding is found by multiplying the principal amount by the interest rate and then by the number of years. Here, it's $7,000 * 12% * 3 = $2,520.

The Total Amount of Interest Calculated Annually on a $7,000