Question

Maggie Sharrer Company borrows $88,500 on September 1, 2017, from Sandwich State Bank by signing an $88,500, 12%, one-year note. What is the accrued interest at December 31, 2017?

Answer 1

interest = $3,540

Step-by-step explanation:

given data

principal = $88,500

rate = 12 %

time = 4 months ( September 1, 2017 to September 1, 2017 )

to find out

What is the accrued interest

solution

we get here interest that is express as

interest = principal × rate × time .......................1

put here value we get interest

interest = $88500 × 12% ×
`(4)/(12)`

interest = $88500 × 0.12 × 0.33333

interest = $3,540