Answered: A $40,000 loan at 4% dated June 10 is…

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest): O $544.00 O $1,600.00 O $546.67 O $547.20

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 9MC: On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market...

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Question

Please answer this question correctly ASAP. Thank you.

A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of
interest is (assume ordinary interest):
O $544.00
O $1,600.00
O $546.67
O $547.20

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