Question

On october 1, 2017, miller, inc. made a loan to one of its customers. the customer signed a 6-month note for $100,000 at 13%. how much interest revenue did the company record in 2018 for this note? (round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Answer 1

Information Given :

Amount = $100,000

Interest = 13%

Time period = 6 months

Date of purchase= oct 1 , 2017

Required :

Interest revenue in 2018 = ?

Solution :

Here the note is for 6 months

3 month's interest are recorded in 2017 for oct, nov , and dec.

Remaining three months interest revenue will be recorded in 2018 .

So interest revenue = 100,000*13%*3/12 = $3250

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