Question

What is the total paymentrequired to pay off a promissorynote issued for $700.00 at 12%ordinary interest and a 180-dayterm?A. $760.00B. $742.00C. $712.00D. $721.60

Answer 1

Given:

Promissory note issued for $700 at 12%.

$P\text{ayment of 12\% for 700=}\frac{700\times\frac{6}{12}\times12}{100}$$\text{Payment for 12\% for 700= \ }42$$\text{Total payment required to pay off=}700+42$$\text{Total payment required to pay off= \ 742}$

Therefore, Option B is the correct answer.