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Blababa [14]
3 years ago
5

on december 1 2020 eagle company sold machinery to a customer for 22000. the customer could not pay time but agreed to pay 6 mon

ths later and signed a 6 month note at 12 % interest. how much interest revenue was earned for the entire term of the note?
Advanced Placement (AP)
1 answer:
Inessa [10]3 years ago
4 0

Answer:

$1320

Explanation:

Data obtained from the question include:

Principal (P) = $22000

Rate (R) = 12 %

Time (T) = 6 months

There are 12 months in a year i.e

12 months = 1 year.

Therefore, 6 months = 6/12 = 1/2 year

Interest (I) =?

Interest is related to principal, rate and time by the following equation:

I = PRT

I = 22000 x 12% x 1/2

I = 22000 x 12/100 x 1/2

I = $1320

Therefore, the interest revenue earned for the entire term of the note is $1320

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