What is the total payment required to
pay off a promissory note issued for
at ordinary interest and a
90 -day term?

Round to the nearest cent.

Ask by Bob Howell. in the United States

Nov 18,2024

Question

What is the total payment required to pay off a promissory note issued for $$ \$ 750.00 $$ at $$ 6 \% $$ ordinary interest and a 90 -day term? $$ \$[?] $$ Round to the nearest cent.

UpStudy AI · Accepted Answer

To calculate the total payment required to pay off a promissory note using ordinary interest, we can use the formula for ordinary interest:

$$
I = P \times r \times t
$$

where:
- $$ I $$ is the interest,
- $$ P $$ is the principal amount (the amount of the note),
- $$ r $$ is the annual interest rate (as a decimal),
- $$ t $$ is the time in years.

Given:
- $$ P = 750.00 $$
- $$ r = 6\% = 0.06 $$
- $$ t = \frac{90}{360} = 0.25 $$ years (since ordinary interest uses a 360-day year)

Now, we can calculate the interest:

$$
I = 750.00 \times 0.06 \times 0.25
$$

Calculating this step-by-step:

1. Calculate $$ 0.06 \times 0.25 = 0.015 $$.
2. Now, calculate $$ 750.00 \times 0.015 = 11.25 $$.

So, the interest $$ I $$ is $$ 11.25 $$.

Next, we find the total payment required to pay off the note, which is the sum of the principal and the interest:

$$
\text{Total Payment} = P + I = 750.00 + 11.25 = 761.25
$$

Thus, the total payment required to pay off the promissory note is:

$$
\boxed{761.25}
$$
The total payment required to pay off the promissory note is $$ \$761.25 $$.

What is the total payment required to
pay off a promissory note issued for
at ordinary interest and a
90 -day term?

Round to the nearest cent.

Solución de inteligencia artificial de Upstudy

Responder

Solución

Bonus Knowledge

preguntas relacionadas

Latest Economics Questions

What is the total payment required to pay off a promissory note issued for at ordinary interest and a 90 -day term? Round to the nearest cent.