A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annualinterest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interestfigure at that time?A. $7,150B. $65,000C. $14,300D. $2,383

Formula: Interest amount = Loan amount x Interest rate x Time period

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 1196. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 1196. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Question

A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual
interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest
figure at that time?
A. $7,150
B. $65,000
C. $14,300
D. $2,383

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