Question

Brothers Inc. issued a 120-day note in the amount of $180,000 on November 1, 2019

with an annual rate of 6%.
What amount of interest has accrued as of December 31, 2019?

Answer 1

Amount of interest = $1,805 (Approx)

Explanation:

Given:

Amount invested = $180,000

Annual rate = 6%

Number of days = 61 days

Find:

Amount of interest

Computation:

Amount of interest = 180,000 x 6% x 61/365

Amount of interest = $1,805 (Approx)