How much interest will accrue on a $40,000 face value, 60-day note that bears interest at 9 percent a year?
A) $3,600
B) $1,800
C) $900
D) $600 40000 x 60/360 x .09 = 600.

Question

Quizplus · Accepted Answer

To find the interest accrued on the note, we can use the formula: Interest = Principal x Rate x Time. In this case, the principal is the face value of the note, which is $40,000. The rate is 9 percent per year, but since the note is only for 60 days, we need to divide by 360 (the number of days in a year) and multiply by 60. This gives us a rate of 1.5 percent for the 60-day period. Plugging these numbers into the formula, we get: Interest = $40,000 x 1.5% = $600. Therefore, the correct choice is D.

How Much Interest Will Accrue on a $40,000 Face Value