The total interest owing on a $10,000, 6%, 6-month note receivable is

A) $50.
B) $100.
C) $300.
D) $600.

Question

The total interest owing on a $10,000, 6%, 6-month note receivable isA) $50.B) $100.C) $300.D) $600.

Carla Andry · Accepted Answer

Final Answer : C, Explanation :  The interest on a note receivable is calculated using the formula: Interest = Principal × Rate × Time. Here, Principal = $10,000, Rate = 6% (or 0.06 as a decimal), and Time = 6 months (or 0.5 years when converted to years). Thus, Interest = $10,000 × 0.06 × 0.5 = $300.

The total interest owing on a $10,000, 6%, 6-month note receivable is

A) $50.
B) $100.
C) $300.
D) $600.

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