On November 1, 2018, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What is the balance of interest payable for the loan as of December 31, 2018?
A) $112,500.
B) $225,000.
C) $450,000.
D) $1,350,000.

Question

Quizplus · Accepted Answer

Accrued interest payable = $30,000,000 × 9% × 2/12 = $450,000

On November 1, 2018, Tim's Toys Borrows $30,000,000 at 9