Question 5 1 point Shelby Company has a note receivable of 1

Question 5 (1 point) Shelby Company has a note receivable of $100,000. It is a 10-month note receivable. The interest rate on the note is 5%, what is the amount of interest revenue that Shelby will collect at the maturity of the note? a) $5,000 b) $4,167 c) $833 d) none of the above.

Solution

Total amount of interest revenue=$100,000*Interest rate*Time period

which is equal to

=$100,000*5%*(10/12)

which is equal to

=$4167(Approx).