Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to:
A) $40,900
B) $43,600
C) $900
D) $3,600

Name: Assuming a 360-day year, when a $40,000, 90-day, 9% interest-bearing note payable matures, total payment will amount to: A) $40,900 B) $43,600 C) $900 D) $3,600
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Quizplus · Accepted Answer

The interest on the note is calculated as $40,000 * 9% * (90/360) = $900. The total payment is the principal plus interest: $40,000 + $900 = $40,900.

Assuming a 360-Day Year, When a $40,000, 90-Day, 9% Interest-Bearing