A one-year, $19,200, 8% note is signed on April 1. If the note is repaid on...

Question

Question

A one-year, $19,200, 8% note is signed on April 1. If the note is repaid on November 1 of the same year, how much interest expense is incurred?

Answer 1

Answer #1

Answer 2

Answer #2

To calculate the interest expense on the note, we need to determine the time period between April 1 and November 1 and apply the interest rate.

The time period between April 1 and November 1 is 7 months.

Using the formula: Interest = Principal × Rate × Time

Principal = $19,200 Rate = 8% (or 0.08) Time = 7/12 (since the time is given in months)

Interest = $19,200 × 0.08 × (7/12) = $912

Therefore, the interest expense incurred on the note is $912.

answered by: Mayre Yıldırım

Answer 3

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