The equation for computing interest on an interest-bearing note is as follows: Interest = Maturity Value × Interest Rate × Time.

Name: The equation for computing interest on an interest-bearing note is as follows: Interest = Maturity Value × Interest Rate × Time.
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The correct equation for computing simple interest is: Interest = Principal × Interest Rate × Time. The maturity value is the sum of the principal plus the interest, not a factor in calculating the interest itself.

The Equation for Computing Interest on an Interest-Bearing Note Is