Mix Recording Studios purchased $7,800 in electronic components from TechCom. Mix Recording Studios signed a 60-day, 10% promissory note for $7,800. If the note is dishonored, what is the amount due on the note?

a. $130

b. $7,800

c. $7,930

d. $8,050

e. $8,130

C) $7,930

Explanation:

The amount due on the note should equal the principal and the accrued interest of the note.

The principal (the amount borrowed) of the note is $7,800.

The accrued interest is: $7,800 x (2/12) x 10% = $130.

The total amount of the note = $7,800 + $130 = $7,930