Given:
The principal amount, P = $750.00.
The rate of interest, r =6 % = 0.06.
The period of the term, t =90 days.
Required:
We need to find the total payment required to pay off a promissory note.
Explanation:
Conver the days into years.
Divide 90 by 365, we get t =90/365.
Consider the formula to find the total payment.
[tex]A=P(1+rt)[/tex]
Substitute P = 750, r =0.06, and t =90/365 in the equation.
[tex]A=750(1+0.06\times\frac{90}{365})[/tex][tex]A=761.25[/tex]
Final answer:
The total payment required to pay off a promissory
note
