what is the total payment required to pay off a promissory note issued for $750.00 at 6% ordinary interest…

what is the total payment required to pay off a promissory note issued for $750.00 at 6% ordinary interest and a 90 - day term? $? round to the nearest cent.

what is the total payment required to pay off a promissory note issued for $750.00 at 6% ordinary interest and a 90 - day term? $? round to the nearest cent.

Answer

Answer:

$761.25$

Explanation:

Step1: Calculate the interest

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. $P=$750$, $r = 0.06$ (since $6%=0.06$), and $t=\frac{90}{360}=0.25$ (using 360 - day year for ordinary interest). $I=Prt=750\times0.06\times0.25 = 750\times0.015=$11.25$

Step2: Calculate the total payment

The total payment $A$ is the sum of the principal $P$ and the interest $I$. $A = P+I$ $A=750 + 11.25=$761.25$