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Marta_Voda [28]
3 years ago
11

On September 1, 2021, Middleton Corp. lends cash and accepts a $1,700 note receivable that offers 7% interest and is due in six

months. How much interest revenue will Middleton Corp. report during 2021
Business
1 answer:
Oksanka [162]3 years ago
3 0

Answer:

The interest revenue in 2021 is $39.44.

Explanation:

The amount of lending cash and accepting = $1700

Interest rate = 7% per annum

Therefore the interest rate per month = 7% / 12 = 0.58%

Now find the interest revenue by multiplying 1700 with per month interest rate and the number of months. Since the lending and accepting date is 1st September. So only 4 months remain in 2021.

The interest revenue in 2021 = 1700 × 0.58 ×4 = $39.44

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