The interest on a $5000 3% 60-day note receivable is

A) $25.
B) $100.
C) $150.
D) $300.

Question

The interest on a $5000 3% 60-day note receivable isA)  $25.B)  $100.C)  $150.D)  $300.

james Sciortino · Accepted Answer

Final Answer : A, Explanation :  The interest on the note can be calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $5000, Rate = 3% (or 0.03 as a decimal), and Time = 60/365 (since interest rates are annual and there are 365 days in a year). Thus, Interest = $5000 × 0.03 × (60/365) = $24.66, which rounds to $25.

The interest on a $5000 3% 60-day note receivable is

A) $25.
B) $100.
C) $150.
D) $300.

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