Question

On Sept. 1 of the current year, a bank lends $1,500 to a company; the note principle and $150 ($1,500 x 10%) annual interest are due in one year. Answer from the bank's standpoint. What is the record revenue for the bank?

Answer 1

The record revenue for the bank would be the interest earned on the loan.

Step-by-step explanation:

The record revenue for the bank in this scenario would be the interest earned on the loan. The bank lent $1,500 to the company with 10% annual interest. So, the bank would earn $150 in interest ($1,500 x 10% = $150).