Ask Question
8 July, 07:23

Suppose a company borrows 15,000 on 1/1/14 at 10% interest rate for a one year term. The company makes interest payments every quarter but accrued for the interest expense each month. Assuming they used the simple interest formula, what amount of interest expense would they record in May?

+5
Answers (1)
  1. 8 July, 08:39
    0
    Answer: 125

    Step-by-step explanation:

    Given that:

    The principal = 15000

    Rate = 10%

    Years = 1 year = 12 month

    Interest I = PRT/100

    I = (15000 * 10 * 1) / 100

    I = 1500

    The amount of interest expense that would they record in May will be

    Interest = I / 12 = 1500/12 = 125
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose a company borrows 15,000 on 1/1/14 at 10% interest rate for a one year term. The company makes interest payments every quarter but ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers