On April 1,2012,Company Z lends $200,000 to Company Y on a 8% note.For the six months ending June 30,2012,what amount of interest revenue will Company Z report on this note?

Question

Quizplus · Accepted Answer

To calculate the interest revenue for the six months ending June 30, 2012, we need to find the interest for half a year (6 months).

Step 1: Find the interest for the entire year: 
$200,000 x 8% = $16,000

Step 2: Find the interest for half a year (6 months): 
$16,000 ÷ 2 = $8,000

Therefore, Company Z will report $4,000 of interest revenue for the six months ending June 30, 2012.

On April 1,2012,Company Z Lends $200,000 to Company Y on a 8