A $7,300, 11.9% note is dated April 21 and is due in 60 days. The amount of interest on the due date of the note would be
A) $119.00.
B) $60.00.
C) $73.00.
D) $144.78.

Question

Quizplus · Accepted Answer

To find the amount of interest on the due date, we first need to find the interest for the full term of the note:

Interest = Principal x Rate x Time
Interest = $7,300 x 0.119 x (60/360)
Interest = $87.60

Next, we need to adjust the interest for the shortened term of the note:

Interest = $87.60 x (60/360)
Interest = $14.60

So the amount of interest due on the note's due date is $87.60 - $14.60 = $73.00. Therefore, the correct answer is (D).