Question

Calculating Interest on Promissory Notes Receivable Houston Company receives a six-month note from a customer. The note has a face amount of $8,000 and an interest rate of nine percent. What is the total amount of interest income to be received

Answer 1

Answer:total amount of interest income to be received = $360

Explanation:

Note amount    =  $8,000

Interest rate per year = 9%

Period= 6 months

Interest amount= Principal x Time x rate

= $8000 x 9% x 6/12= $360

Therefore, the  total amount of interest income to be received = $360