A business borrows $1,000, signing a note that requires repayment of the amount borrowed in two payments of $600 each, one at the end of each of the next two 6-month periods. Calculate the total interest on the note. What is the principal amount of the note?
Principal amount:
The amount of principal is the amount of money which is lent to the borrower.
Interest amount:
The amount of interest is the amount which is recovered on the money lent to the borrower at a specified rate.
To calculate:
The total interest and principal amount.
Given:
Here, as per the above given information, the principal amount is:
Now, the amount of interest is to be calculated as:
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