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krek1111 [17]
3 years ago
10

Corporation borrows cash by signing a $90,000​, 8​%, eight​-month note on December 1 with its local bank. The total cash paid fo

r interest​ (only) at the maturity of the note by Lexter will be:______
a. $600
b. $3,600
c. $4,800
d. $7,200
Business
1 answer:
levacccp [35]3 years ago
6 0

Answer:

c. $4,800

Explanation:

Loan Note is the promissory document to repay a specific amount of loan after a specific time period along with interest applicable to the loan value using a specified rate.

Interest amount can be calculated as follow

Interest = Loan Note's face value x Interest rate x Numbers of months upto maturity / NUmbers of months in a year

Placing values in the formula

Interest = $90,000 x 8% x 8/12

Interst = $4,800

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