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Jupiter Company signed a onedashyear ​$36,000 note payable at​ 8% interest on March​ 1, 2019. How much interest expense must be accrued on May​ 31, 2019?​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest whole​ number.)

1 Answer

7 votes

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

User Aleksandar Zoric
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