Brown company purchases equipment

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On November 1, Brown Company purchases equipment costing $100,000 by signing a 3-month, 8% note payable (simple interest). The amount of interest that has accrued on this note at December 31 amounts to

a. $1,333.

b. $2,000.

c. $5,333.

d. $8,000.

e. none of the above

Use the information above for Brown Company. The maturity value of the note is

 

a.

$100,000.

 

b.

$102,000.

 

c.

$105,333.

 

d.

$108,000.

 

e.

none of the above

Reference no: EM13949472

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