Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be a. $20,250 b. $1,000 c. $21,000 d. $250

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asked Sep 7, 2018 39.8k views

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BOMEz · Answer 1 · 2018-09-13T05:36:16+0000

In a 360-day year: 90 : 360 = 1/4 of a year. p = 5% = 0.05Interest: $20,000 * 0.05 * 1/4 = $1,000 * 1/4 = $250So the interest is $250 for 90 days.Finally: $20,000 + $250 = $20,250Answer:Total payment will be a. $20,250.

Assuming a 360-day year, when a $20,000, 90-day, 5% interest-bearing note payable matures, total payment will be a. $20,250 b. $1,000 c. $21,000 d. $250

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