Sodium Inc.borrowed $175,000 on April 1.The note requires interest at 12% and principal to be paid in one year.How much interest is recognized for the period from April 1 to December 31?

Name: Sodium Inc.borrowed $175,000 on April 1.The note requires interest at 12% and principal to be paid in one year.How much interest is recognized for the period from April 1 to December 31?
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Question

Quizplus · Accepted Answer

The interest for the period from April 1 to December 31 is calculated as follows: $175,000 * 12% * (9/12) = $15,750.