Maggie Sharrer Company borrows $88,500 on September 1, 2017, from Sandwich State Bank by signing an $88,500, 12%, one-year note.
1 answer:
Answer:
interest = $3,540
Explanation:
given data
principal = $88,500
rate = 12 %
time = 4 months ( September 1, 2017 to September 1, 2017 )
to find out
What is the accrued interest
solution
we get here interest that is express as
interest = principal × rate × time .......................1
put here value we get interest
interest = $88500 × 12% ×
interest = $88500 × 0.12 × 0.33333
interest = $3,540
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