If a note has principal 25000 and annual interest rate 6% for 4 months, what is the accrued interest?

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Multiple Choice

If a note has principal 25000 and annual interest rate 6% for 4 months, what is the accrued interest?

Explanation:
Accrued interest for simple interest is found with I = P × r × t, where P is the principal, r is the annual rate, and t is the time in years. Here, P = 25,000, r = 0.06 (6%), and the time is 4 months, which is 4/12 = 1/3 of a year. So I = 25,000 × 0.06 × 1/3 = 25,000 × 0.02 = 500. Therefore, the accrued interest is 500.

Accrued interest for simple interest is found with I = P × r × t, where P is the principal, r is the annual rate, and t is the time in years. Here, P = 25,000, r = 0.06 (6%), and the time is 4 months, which is 4/12 = 1/3 of a year. So I = 25,000 × 0.06 × 1/3 = 25,000 × 0.02 = 500. Therefore, the accrued interest is 500.

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