Final answer:
To find the interest on a note payable with a $15,000 face value at a 10% interest rate after 4 months, we use the simple interest formula. The calculated interest is $500, which is the amount to be recorded. Option number d is correct.
Step-by-step explanation:
The question pertains to calculating the amount of interest accrued on a note payable with a face value of $15,000 and a 10% interest rate, after 4 of 12 months. We'll use the formula for simple interest, which is:
Interest = Principal × Rate × Time
For the given note:
- Principal (P) = $15,000
- Annual Interest Rate (R) = 10% or 0.10
- Time (T) = 4/12 year, since we're calculating for 4 months out of a 12-month year
By substituting these values into the simple interest formula, we calculate the interest:
Interest = $15,000 × 0.10 × (4/12)
Performing the calculation:
Interest = $15,000 × 0.10 × 0.3333
Interest = $500
Therefore, the amount of interest to record after 4 months is $500.