Answer:
The answer is: $720
Step-by-step explanation:
We can use the following formula to calculate Jupiter Company's interest expenses:
- interest expenses = principal x (annual interest / 12) x number of months
interest expenses = $36,000 x (8%/12) x 3 months (March, April and May)
interest expenses = $36,000 x 0.0067 x 3 = $720