The interest charged on a 50000 note payable at the rate of

The interest charged on a $50,000 note payable, at the rate of 6%, on a 90-day note would be

a. $3,000.

b. $1,500

c. $750.

d. $500.

Solution

c. $750

The interest charged on a $50,000 note payable, at the rate of 6%, on a 90-day note would be:

= $50,000 * 0.06 * 90/360

= $750