Ramos Company has a 90-day note that carries an annual interestrate of 8%. If the amount of the total interest on the note is equal to$700, what is the note's principal?a. $8,750b. $35,000c. $50,400d. $22,400

Step 1: Calculation of principal of note We can calculate the principal of note using following…

Answered: Ramos Company has a 90-day note that…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $700, what is the note's principal? a. $8,750 b. $35,000 c. $50,400 d. $22,400