# Real Estate Math Class : Lesson 115

A promissory note for \$17000 is dated April the 15th 2008 and has an annual interest rate of 5%.

The interest is paybable quarterly.

None of the interest has been paid yet so a notice is sent to the borrower requesting interest due on January 15th, 2009.

How much interest is now due as of January 1, 2009 ?

A. \$637.50

The annual interest on 17000 at 5% is \$850 and we get this by multiplying .05 or 5% times 17000.

Next, divide 850 by four to get the four interest payments of \$212.50.

January 15, 2009 is the beginning of the fourth quarter so three quarterly interest payments are due, and we multiply the quarterly interest payment of \$212.50 time 3 to get the interest due of \$637.50.

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