Question

Assuming a 360-day year, when a $49,200, 90-day, 6% interest-bearing note payable matures, the total payment will be ______ .

Round your answer to the nearest whole dollar.
a. $2,952
b. $49,938
c. $52,152
d. $49,200

Answer 1

b. $49,938

Step-by-step explanation:

The computation of the total payment is shown below:

Total payment is

= Principal + interest amount

where,

The Principal is $49,200

And, the interest is

= $49200 × 6% × 90 days ÷ 360 days

= $738

Now

Total payment is

= $49,200 + $738

= $49,938

hence, the correct option is b. $49,938

The same is to be considered