Cannus Company signed a $6,000 ninety day note payable on November 1 that bears interest at a rate of 7%. The total interest to be accrued on this note at December 31 is:
A) $35.
B) $70
C) $420.
D) $105.

Question

Quizplus · Accepted Answer

To calculate the interest accrued on the note payable, we need to find the interest for the 61 days between November 1 and December 31.

Interest = Principal x Rate x Time
= $6,000 x 7% x (61/365)
= $70.41

Therefore, the total interest to be accrued on this note at December 31 is approximately $70, which is closest to choice B.

Cannus Company Signed a $6,000 Ninety Day Note Payable on November