what is the total payment required to pay off...
what is the total payment required to pay off a promissory note issued for $700.00 at 15% ordinary interest and a 90 - day term? $? round to the nearest cent.
Answer
# Answer:
$726.25
# Explanation:
## Step1: Calculate the interest
The formula for simple - interest 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.
$P=\$700$, $r = 0.15$, and $t=\frac{90}{360}=0.25$ (since ordinary interest uses 360 - day year).
$I=700\times0.15\times0.25$
$I = 700\times0.0375=\$26.25$
## Step2: Calculate the total payment
The total payment $A$ is the sum of the principal $P$ and the interest $I$.
$A=P + I$
$A=700+26.25=\$726.25$