Amos Real Estate signed a four-month note payable in the amount of $16,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is:

Name: Amos Real Estate signed a four-month note payable in the amount of $16,000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is:
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Question

Quizplus · Accepted Answer

The interest for one month is calculated as $16,000 * 9% / 12 = $120.

Amos Real Estate Signed a Four-Month Note Payable in the Amount