Question

On December 1, Victoria Company signed a 90-day, 7% note payable, with a face value of $13,200. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Answer 1

amount of interest expense is $77

Step-by-step explanation:

given data

rate = 7 %

face value = $13,200

year = 360 days

to find out

amount of interest expense

solution

we take here 30 days in December that is taken

so Interest expense is here

interest expose = face value × rate × time ...........................1

put here value

interest expose = 13200 × 7% ×
`(30)/(360)`

interest expose = 13200 × 0.07 ×0.083333

interest expose = 77

so amount of interest expense is $77