Answer:
$831.44
Step-by-step explanation:
To calculate the total payment required to pay off the promissory note, we first calculate the interest using the formula for simple interest:
I = PRT
where:
- I is the interest,
- P is the principal amount,
- R is the annual interest rate (in decimal form), and
- T is the time the money is borrowed for (in years).
Given that the principal amount (P) is $800.00, the annual interest rate (R) is 8% (or 0.08 in decimal form), and the time (T) is 180 days (or 0.493 years when converted from days to years), we can substitute these values into the formula:
I = 800 * 0.08 * 0.493
This gives us an interest amount of approximately $31.44.
The total payment required to pay off the promissory note is the sum of the principal amount and the interest, which is $800.00 + $31.44 = $831.44.
