The interest on a $5,000 face value,3-month note bearing interest at 9 percent a year would be $1,350.

Name: The interest on a $5,000 face value,3-month note bearing interest at 9 percent a year would be $1,350.
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Question

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The interest on a $5,000 face value, 3-month note bearing interest at 9 percent a year would be:

($5,000 x 0.09) x (3/12) = $112.50

Therefore, the statement is false. The interest earned would be $112.50, not $1,350.

The Interest on a $5,000 Face Value,3-Month Note Bearing Interest