Answer:
$213,210
Explanation:
The computation of the amount needed to pay back is shown below:
= Note payable + interest expense for 2 months + interest expense for 4 months
where,
Note payable is $207,000
Interest expense for 2 months is
= $207,000 × 6% × 2 months ÷ 12 months
= $2,070
The 2 months is calculated from Nov to Dec 31
And, the interest expense for 4 months is
= $207,000 × 6% × 4 months ÷ 12 months
= $4,140
The 4 months is calculated from Dec 31 to May 1
So, the total amount needed is
= $207,000 + $2,070 + $4,140
= $213,210
