SWC Bus Charter signed a four-month note payable in the amount of $30000 on September 1. The note requires interest at an annual rate of 5%. The amount of interest to be accrued at the end of September is
A) $125.
B) $200.
C) $500.
D) $1500.

Question

Quizplus · Accepted Answer

The interest for one month is calculated as follows: $30,000 * 5% annual interest rate = $1,500 annual interest. Then, $1,500 / 12 months = $125 for one month.

SWC Bus Charter Signed a Four-Month Note Payable in the Amount