Answer: answer is not in the option.
Correst answer -Noble must pay South Bank on May 1, Year 2, when the note matures, $84,800
Explanation:
Interest accrued = Principal(amount borrowed) x rate x time
= $80,000 x 12 x 6/12
= $4,800
Amount to be paid on may 1 st the next year (year 2 )=Amount borrowed + interest accrued
= $80,000 + $4,800 = $84,800
Noble must pay South Bank on May 1, Year 2, when the note matures the sum of $84,800
