A company is undergoing a restructuring, and its free cash flows are expected to vary considerably during the next few years. Ho
1 answer:
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Answer:
interest = 2,000
Explanation:
We will calculate the interest on the note:
<u>Rembemer:</u> Notes use simple interest
Is important that time and rate are expressed in the same measurement.
rate are generally expressed annually. so we must express time on years too.
this note is a 4 month note, we should convert 4 month in years:
1 years has 12 month
X year has 4 month
X = 4/12 = 1/3 of a year
Finally the rate is express in percent, we should divide by 100 to get the decimal:
6% = 6/100 = 0.06
interest = 2,000