nicolejadaoun nicolejadaoun

23-04-2018
Mathematics

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A company receives a 10%, 120-day note for $1,500. The total interest due on the maturity date is

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CastleRook CastleRook

02-05-2018

Assuming a simple interest model for this information, the interest due at maturity will be:
I=(PRT)/100
where:
P=principle
R=rate
T=time
thus
I=1500×120/364×10/100
I=$49.45
Answer: $49.45

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