what is the total payment required to pay off a promissory note issued for $650.00 at 15% ordinary interest…

what is the total payment required to pay off a promissory note issued for $650.00 at 15% 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 $650.00 at 15% ordinary interest and a 180 - day term? $? round to the nearest cent.

Answer

Answer:

$700.88$

Explanation:

Step1: Identify the simple - interest formula

$I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. $P=$650$, $r = 0.15$, and $t=\frac{180}{360}=0.5$ (using 360 - day year for ordinary interest).

Step2: Calculate the interest

$I=Prt=650\times0.15\times0.5=$48.75$

Step3: Calculate the total payment

The total payment $A$ is the sum of the principal $P$ and the interest $I$. $A = P+I=650 + 48.75=$700.88$