If interest is due at maturity, a $50,000, 4%, 9-month note payable requires an interest payment of
A)$1,500.
B)$222.
C)$167.
D)$2,000.

Question

Quizplus · Accepted Answer

The interest payment can be calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $50,000, Rate = 4% (or 0.04 as a decimal), and Time = 9/12 year (since it's 9 months out of 12 in a year). So, Interest = $50,000 x 0.04 x (9/12) = $1,500.

If Interest Is Due at Maturity, a $50,000, 4%, 9-Month