Answered: Calculate the amount of interest that…

Calculate the amount of interest that the following note will earn (for the life of the note). Please show work! $1,000 Face 7% interest Term: 90 days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Calculate the amount of interest that the following note will earn (for the life of the note). Please show work!

$1,000 Face

7% interest

Term: 90 days

Expert Solution

Step 1

Total Interest earned on note = Face value of note x rate of interest x No. of days / 360

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