Question

SWC Bus Charter signed a four-month note payable in the amount of $30,000 on September 1. The note requires interest at an annual rate of 5%. The amount of interest to be accrued at the end of September is

		$125.
		$200.
		$500.
		$1,500.

Answer 1

Interest accrued at the end of September = $30000*5%*1/12

= $125