Calculate the total interest for a short term notes payable.

Libby secured a three-month loan at an interest rate of 4.5% and borrowed $25,000 to purchase a truck.

When the loan matures, Ann will pay ________ in interest to the bank.

• a.)
• $1,575.00
• b.)
• $281.25
• c.)
• $1,125.00
• d.)
• $393.75