A 12-month,8% note dated August 1,2013 for $5,000 would have accrued interest payable on December 31,2013 of $166.67.

Question

Quizplus · Accepted Answer

To calculate the accrued interest on a note, we use the formula: 
Accrued Interest = Principal x Interest Rate x Time

In this case, the Principal is $5,000, the Interest Rate is 8% (0.08 as a decimal), and the Time is 5/12 (since there are 5 months between August 1 and December 31).

Plugging in these values, we get: 
Accrued Interest = $5,000 x 0.08 x (5/12) 
Accrued Interest = $166.67

Therefore, the statement "A 12-month, 8% note dated August 1, 2013 for $5,000 would have accrued interest payable on December 31, 2013 of $166.67" is true.

A 12-Month,8% Note Dated August 1,2013 for $5,000 Would Have