A one-year,$15,000,6% note is signed on April 1.If the note is repaid on September 1 of the same year,how much interest expense is incurred?
A)$900
B)$450
C)$375
D)$300

Name: A one-year,$15,000,6% note is signed on April 1.If the note is repaid on September 1 of the same year,how much interest expense is incurred? A)$900 B)$450 C)$375 D)$300
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Question

Quizplus · Accepted Answer

Interest = Principal × Interest rate × Time
= $15,000 × 0.06 × 5 / 12 (April through September)= $375

A One-Year,$15,000,6% Note Is Signed on April 1