Answer: $5,740
The amount to be recorded by the food supplier after 90 days is $5,740
Explanation:
By using the formula
A = p + prt
A = future amount ( amount due on a debt)
p= principal / present value=$5,600
r = interest rate = 10% = 0.1
t = time in year. Convert 90days to Yr..( 60/360) = 0.25yrs
A= p+prt = p(1 + rt)
A = 5600 [1 + (0.1 × 0.25)]
A = 5600 [1 + 0.025]
A = 5600 (1.025)
A = $5,740.
The amount that would be returned after 90 days at 10% interest rate is $5,740.
