Given:
Promissory note issued for $700 at 12%.
[tex]P\text{ayment of 12\% for 700=}\frac{700\times\frac{6}{12}\times12}{100}[/tex][tex]\text{Payment for 12\% for 700= \$}42[/tex][tex]\text{Total payment required to pay off=}700+42[/tex][tex]\text{Total payment required to pay off= \$742}[/tex]
Therefore, Option B is the correct answer.
