A one-year, $24,600, 12% note is signed on April 1. If the note is repaid on October 1 of the same year, how much interest expense is incurred? (Do not round intermediate calculations.)
$2,952
$1,476
$1,722
$1,230
The following 12%, $1,000 notes were issued on December 1. Which of the following is the correct method of calculation for the interest accrued as of December 31 of the same year on each of the notes described?
Interest on a 4-month note is calculated as: $1,000 × 12% × 1/12.
Interest on a 3-month note is calculated as: $1,000 × 12% × 1/3.
Interest on a 4-month note is calculated as: $1,000 × 12% × 1/4.
Interest on a 2-year note is calculated as: $1,000 × 12% × 1/24.