DeNova Real Estate Signed a Four-Month Note Payable in the Amount

question 178

Multiple Choice

DeNova Real Estate signed a four-month note payable in the amount of $40,000 on May 1.The note requires interest at an annual rate of 6%.The amount of interest to be accrued at the end of May is:

• A)$2,400.
• B)$600.
• C)$200.
• D)$450.