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# What is the interest revenue recorded by Nelson Inc. if they accept a \$100,000 note at 8%? Use the following data.

Date of Acceptance: April 1, 2012.
Date of Receiving: March 31, 2013.

A. \$8000
B. \$0
C. \$6000
D. \$2000

This question is part of Financial Accounting Exam II, Chapters 5 & 6
Asked by Stephens, Last updated: Sep 08, 2020

#### c.Dorothy

C.Dorothy

The interest revenue off this \$100,000 should be \$8,000. This is actually fairly easy calculation. First, you divide \$100,000 by .08. This gives you \$8,000. That is literally all you need to do to find the interest revenue for the year this has been in this particular company’s hold. If the question had asked for a more complex answer, it should have asked for the interest revenue after something like a year and a half or something like that.

However, this is just the math done by a person who doesn’t usually do the math. The answer could actually be \$2000, but I simply wouldn’t know how to get that answer. Even after all my research, math makes no sense.

Stephens

\$2000