On October 1, 2018, Equipment Suppliers, Inc. made a loan to one of its customers. The customer signed a 4-month note for $110,000 at 12%. How much interest revenue did the company record in the year 2018? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

To calculate the interest revenue, we need to multiply the principal amount ($110,000) by the annual interest rate (12%) and divide by the number of months in a year (12 months).

Interest revenue = ($110,000 x 0.12 x 3/12) = $3,300

Therefore, the correct answer is D ($3,300).