what is the total payment required to pay off...
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 $I$.
$A = P+I$
$A=750 + 11.25=\$761.25$