On November 1, 2009, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term and both principal and interest are payable at maturity. What should be the balance of interest payable for the loan as of December 31, 2009?
A)$ 112,500.
B)$ 225,000.
C)$ 450,000.
D)$1,350,000.Accrued interest payable = $30,000,000 9% 2/12 = $450,000

Question

Quizplus · Accepted Answer

The accrued interest payable would be $450,000 ($30,000,000 * 9% * 2/12) as of December 31, 2009. Therefore, the best choice is C.

On November 1, 2009, Tim's Toys Borrows $30,000,000 at 9