A corporate borrows funds from a financial, therefore the financial helps to make the notice payable inside a-year, which have attract

A corporate borrows funds from a financial, therefore the financial helps to make the notice payable inside a-year, which have attract

(Figure)Race Nuts turns a great $130,100 account payable on an initial-title note payable, with an annual interest off six%, and you can payable inside four weeks. How much attract tend to Marathon Crazy are obligated to pay at the conclusion of five days?

  1. $2,600
  2. $7,800
  3. $137,800
  4. $132,600

Concerns

A short-label notes payable has no a lot of time-title features and that’s meant to be paid-in full within this their operating months (below a year). The modern part of a great noncurrent mention payable depends from out-of a lengthy-title debt but is simply named a recently available responsibility whenever an element of the long-identity notice payable flow from. Continue lendo “A corporate borrows funds from a financial, therefore the financial helps to make the notice payable inside a-year, which have attract”