Question

On August​ 1, 2018​, Gitore​, ​Inc., sold equipment and accepted a​ six-month, 9​%, $ 30 comma 000 note receivable. How much interest does Gitore expect to collect on the maturity date​ (February 1, 2019​)?

Answer 1

Answer:

$1,350

Explanation:

The equipment was sold for 30,000

The promissory note was for 6 months on at 9%

Interest Gitore expects will be

Interest = P x R x T

P is $30,000

r is 9% per year, which is 0.09 percent or 0.0075 per month

t is 6 months

Interest = $30,000 x 0.0075 x 6

Interest = $225 x 6

=$1,350