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On December 1, Victoria Company signed a 90-day, 7% note payable, with a face value of $13,200. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year.)

Respuesta :

Answer:

amount of interest expense is $77

Explanation:

given data

rate = 7 %

face value = $13,200

year = 360 days

to find out

amount of interest expense

solution

we take here 30 days in December that is taken

so Interest expense is here

interest expose =  face value × rate × time ...........................1

put here value

interest expose =  13200 × 7% × [tex]\frac{30}{360}[/tex]

interest expose =  13200 × 0.07 ×0.083333

interest expose =  77

so amount of interest expense is $77

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