The total interest on an $8,000, 5%, 3-month note receivable is
A)$ 100.
B)$ 200.
C)$ 400.
D)$1,200.

Name: The total interest on an $8,000, 5%, 3-month note receivable is A)$ 100. B)$ 200. C)$ 400. D)$1,200.
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Question

Quizplus · Accepted Answer

The interest on a note is calculated using the formula: Interest = Principal x Rate x Time. Here, the principal is $8,000, the rate is 5% (or 0.05), and the time is 3/12 of a year (since it's a 3-month note). Therefore, Interest = $8,000 x 0.05 x (3/12) = $100.

The Total Interest on an $8,000, 5%, 3-Month Note Receivable