Question

A $ 45 comma 000​, threeminus​month, 12​% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

Answer 1

The correct answer is $312.5.

Step-by-step explanation:

According to the scenario, the computation of the given data are as follows:

The interest amount after one month of issue considered as accrued interest.

So, Face value = $45,000

interest rate = 12%

Period = 1 month

So, we can calculate the accrued interest by using following formula:

Accrued interest amount = ( FV × rate) ÷ 12

= ($45,000 × 12% ) ÷ 12

= $312.5