The total interest owing on a $10,000, 4%, 3-month note receivable is
A)$100.
B)$200.
C)$400.
D)$1,200.

Name: The total interest owing on a $10,000, 4%, 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 receivable is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $10,000, Rate = 4% (or 0.04 as a decimal), and Time = 3/12 year (since it's for 3 months). Thus, Interest = $10,000 x 0.04 x 3/12 = $100.

The Total Interest Owing on a $10,000, 4%, 3-Month Note