26 The total interest that would be due and payable based on

26. The total interest that would be due and payable based on an $80,000 note payable, at an annualized interest rate of 6%, for a period of 90-days (assuming a 360 day year) would be: $2,400 B) $1,200 C) $4,800 D) None of the above

Solution

Correct Answer is B. $1,200 The interest rate that would be due and payable @6% for 90 days: $80,000 X 6% X (90/360) = $1,200