Assuming a 360 day year, the interest charged by the bank at the rate of 6%, on a 90 day discounted note payable of 100,000 is:_

Question

Ainat [17]

2 years ago

11

Assuming a 360 day year, the interest charged by the bank at the rate of 6%, on a 90 day discounted note payable of 100,000 is:_

______.A. $6,000 B. $1,500 C. $ 500 D. $ 3,000

Business

1 answer:

Readme [11.4K] · Answer 1 · 2022-09-16T07:38:58+03:00

Answer:B. $1,500

Explanation:

Interest revenue is money earned when an entity or individual loans money to another. it can also be regarded as money accrued from investments. IT is calculated as

Interest Revenue = Principal x Rate x Time

= $100,000 x 6% x 90/360

= $100,000 x 0.06 x 0.25

= $1,500

Therefore the interest charge by the bank is $1500.