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18 December, 23:36

A company receives a 10%, 120-day note for $1,500. The total interest due on the maturity date is

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  1. 18 December, 23:44
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    Assuming a simple interest model for this information, the interest due at maturity will be:

    I = (PRT) / 100

    where:

    P=principle

    R=rate

    T=time

    thus

    I=1500*120/364*10/100

    I=$49.45

    Answer: $49.45
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