What amounts will ABC record related to the note

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Problem 1: ABC lends XYZ $75,000 on July 1, 2020, accepting a four-month, 6.5% interest-bearing note. Assuming the date ABC's statement of financial position is September 30, 2020, what amounts will ABC record related to this note?

Option 1: ABC will record interest revenue of $1.625

Option 2: ABC will record interest revenue of $16.250

Option 3: ABC will record interest revenue of $1218.75

Option 4: ABC wil record interest revenue of $12.187.5

Reference no: EM132617930

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