How much interest will accrue on a $20,000 face value, 60-day note that bears interest at 9 percent a year?
A) $300
B) $450
C) $900
D) $1,800 20,000 x 60/360 x 9% = $300.

Question

Quizplus · Accepted Answer

The interest is calculated using the formula: Interest = Principal x Rate x Time. Here, Principal = $20,000, Rate = 9% per annum, and Time = 60/360 years. So, Interest = $20,000 x 9% x (60/360) = $300.

How Much Interest Will Accrue on a $20,000 Face Value