The Interest Charged on a $90,000 Note Payable, at the Rate

question 61

Multiple Choice

The interest charged on a $90,000 note payable, at the rate of 6%, on a 60-day note would be

• A)$5,400.
• B)$2,700.
• C)$1,350.
• D)$900.

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Definitions:

Promissory Note

A financial instrument in which one party (the maker) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand.

Missing Interest Rate

The not specified or unidentified rate of interest in a financial context.

Real Compound Rate of Return

The annual rate of return on an investment, adjusted for inflation, that compounds over time.

CPI Increased

indicates that the Consumer Price Index, which measures changes in the price level of consumer goods and services, has risen.