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if a company borrowed $20,000 on november 1 at the rate of 6 nnually, how much interest expense should be accrued at the year-end date of december 31, assuming no accrual has yet been made this year?

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Hi1315

Answer:

$240

Explanation:

To calculate the interest expense accrued from November 1st to December 31st, we first need to determine the time the loan was outstanding, which is 2 months. Then, we use the formula:

[tex]\sf Interest= \dfrac{Principal \times Rate \times Time}{100}[/tex]

Given:

- Principal = $20,000

- Annual interest rate = 6%

Substituting these values:

[tex]\sf Interest= \dfrac{20000 \times 6 \times 2/12}{100}\\\\Interest = \dfrac{24000}{100} \\\\Interest = \$240[/tex]

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