Given a 360-day year,the interest expense on a $7,300,8%,77-day promissory note payable is:
A)$584.00.
B)$459.09.
C)$124.91.
D)some other amount.

Question

Quizplus · Accepted Answer

The interest expense can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $7,300, Rate = 8% (or 0.08 as a decimal), and Time = 77/360 (since the year is considered to have 360 days). Thus, Interest = $7,300 × 0.08 × (77/360) = $124.91.

Given a 360-Day Year,the Interest Expense on a $7,300,8%,77-Day Promissory