To calculate the interest expense on the note payable, you need to use the formula for simple interest which is:

Interest = Principal x Rate x Time

Here, the principal is $50,000, the rate is 8% (or 0.08 when expressed as a decimal), and the time is 6 months (or 0.5 when expressed as a year).

So, the calculation would be:

Interest = $50,000 x 0.08 x 0.5 = $2,000

Therefore, the interest expense on the note payable would be $2,000. So, the correct answer is (b) $2,000.

Question

To calculate the interest expense on the note payable, you need to use the formula for simple interest which is:

Interest = Principal x Rate x Time

Here, the principal is $50,000, the rate is 8% (or 0.08 when expressed as a decimal), and the time is 6 months (or 0.5 when expressed as a year).

So, the calculation would be:

Interest = $50,000 x 0.08 x 0.5 = $2,000

Therefore, the interest expense on the note payable would be $2,000. So, the correct answer is (b) $2,000.

Knowee AI · Accepted Answer

To calculate the interest expense on the note payable, you need to use the formula for simple interest which is:

Interest = Principal x Rate x Time

Here, the principal is $50,000, the rate is 8% (or 0.08 when expressed as a decimal), and the time is 6 months (or 0.5 when expressed as a year).

So, the calculation would be:

Interest = $50,000 x 0.08 x 0.5 = $2,000

Therefore, the interest expense on the note payable would be $2,000. So, the correct answer is (b) $2,000.

If a company borrows $50,000 at an annual interest rate of 8% for 6 months, what would be the interest expense on the note payable?Question 13Answera.$1,000b.$2,000c.$2,500d.$4,000