The amount of interest on a 10% note of $600 dated May 7 and due July 18 would be $12.00.

Question

Quizplus · Accepted Answer

The note is for $600 and has an interest rate of 10%. To calculate the interest, we need to determine the time between May 7 and July 18.

May 7 to June 7 is one month, which is 30 days. 
June 7 to July 7 is another month, which is also 30 days. 
July 7 to July 18 is 11 days.

The total time between May 7 and July 18 is 71 days.

To calculate the interest, we use the simple interest formula: 
Interest = (principal x rate x time) / 365

Plugging in the values, we get: 
Interest = (600 x 0.10 x 71) / 365 
Interest = 11.64

Rounding to the nearest cent, the interest on the note is $11.64, which is closest to answer choice A, $12.00.

The Amount of Interest on a 10% Note of $600