Question

On the maturity date of a $10,800, 6-month, 8% note, the borrower sends a check that includes the principal and all of the interest due on the note. What is the amount of the borrower's check?​

Answer 1

Answer: $ 11,232.00

Step-by-step explanation:

Given:  Amount = $ 10,800

Interest Rate = 8%   =0.08

Time in Months= 6.00

Formula :

Interest on Note = (Amount)× (Interest Rate) × ((Time in Months) /12)

= (10800)× (0.08)× (6/12)

= $432

The amount of the borrower's check =(Amount + Interest on Note)

= $ (10,800+432)

= $ 11,232.00

Hence, The amount of the borrower's check = $ 11,232.00