Knoll Manufacturing lends its supplier $300,000 for 3 years at a 6% annual interest rate.Interest payments are to be made twice a year.Each interest payment will be for:

Question

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Interest payments are made twice per year;six months are covered by each interest payment.
Interest = Principal × Interest Rate × Time
= $300,000 × 0.06 × 6/12 = $9,000

Knoll Manufacturing Lends Its Supplier $300,000 for 3 Years at a 6