DeNova Real Estate signed a four-month note payable in the amount of $40000 on September 1.The note requires interest at an annual rate of 6%.The amount of interest to be accrued at the end of September is:

Question

Quizplus · Accepted Answer

The interest for one month is calculated by multiplying the principal by the interest rate and dividing by 12 months.

So, the interest for one month is: 
(40000 x 6%) / 12 = $200

Therefore, the amount of interest accrued at the end of September is $200.

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