Question

During the current year, your company lent $49,591 at 3.1% for 5 months. Calculate the total interest that your company will receive on this note. (round to the nearest dollar and do not enter dollar sign or comma. e.g. Enter $5,421.42 as 5421)

Answer 1

Answer)

Calculation of total interest that the company will receive

Amount of Interest = (Amount Lent X rate of interest X 5months)/ 12 months

                                    = ($ 49,591 X 3.1% X 5)/ 12

                                    = $ 641 (rounded off)

Therefore the amount of interest that the company will receive will be $ 641.

Final Answer: 641

The following note will not form part of answer. It is just for understanding.

Note: As required by the question, no dollar sign or commas have been used in the final answer.