Vaughn Manufacturing has a 60-day note that carries an annual interest rate of 9%. If the amount of the total interest on the note is equal to $840, then what is the principal of the note? (Use 360 days for calculation.) a. $10,500 b. $56,000 c. $60,480 d. $26,880

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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Vaughn Manufacturing has a 60-day note that carries an
annual interest rate of 9%. If the amount of the total interest on
the note is equal to $840, then what is the principal of the
note? (Use 360 days for calculation.)
a. $10,500
b. $56,000
c. $60,480
d. $26,880
Transcribed Image Text:Vaughn Manufacturing has a 60-day note that carries an annual interest rate of 9%. If the amount of the total interest on the note is equal to $840, then what is the principal of the note? (Use 360 days for calculation.) a. $10,500 b. $56,000 c. $60,480 d. $26,880
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