what is the total payment required to pay off a promissory note issued for $600.00 at 10% ordinary interest…

what is the total payment required to pay off a promissory note issued for $600.00 at 10% ordinary interest and a 180 - day term? $? round to the nearest cent.

what is the total payment required to pay off a promissory note issued for $600.00 at 10% ordinary interest and a 180 - day term? $? round to the nearest cent.

Answer

Answer:

$630.00

Explanation:

Step1: Calculate the interest

The formula for simple - interest is $I = Prt$. Here, $P=$600$, $r = 10%=0.1$, and $t=\frac{180}{360}$ (in ordinary - interest, we assume 360 days in a year). So, $I=600\times0.1\times\frac{180}{360}$. $I = 600\times0.1\times0.5=$30$

Step2: Calculate the total payment

The total payment $A$ is the sum of the principal $P$ and the interest $I$. So, $A=P + I$. $A=600 + 30=$630$