Gearyjames8
14.02.2020 •
Business
On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9%. Calculate the amount of interest expense the company would record for its year ending December 31, 20X1 (rounded to the nearest dollar).
a. $40,500.
b. $9,289.
c. $10,125.
d. $8,522.
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Ответ:
The answer is c. $10,125.
Explanation:
interest rate = 9%
loan amount= 450000
time = 0.25years
Interest charge = 450000* 0.25 * 0.09 =$10,125.
The interest charge will be $10,125 because the loan was taken in October and the financial year ends in December, which makes it 3 months which is 0.25 years.
Ответ:
ok