Interest on a 3-month, 3%, $20,000 note is calculated by multiplying $20,000 * 3% * 3.

Name: Interest on a 3-month, 3%, $20,000 note is calculated by multiplying $20,000 * 3% * 3.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Interest on a note is calculated by multiplying the principal amount by the interest rate and the time period involved, but the formula provided is unclear and incorrectly formatted. The correct calculation for a 3-month, 3% interest on a $20,000 note would be $20,000 * 3% * (3/12), assuming the interest rate is annual.

Interest on a 3-Month, 3%, $20,000 Note Is Calculated by Multiplying