On September 1, 2017, Bonita Industries issued a note payable to Fidelity Bank in the amount of $2710000, bearing On this date, the bank's prime rate was 10%. The first payment for interest and principal was made on September 1, 2018. At Dece interest at 9%, and payable in three equal annual principal payments of $895000. mber 31, 2018, Bonita should record accrued interest payable of a. $54450. b. $ 80550. c. $181500. d. $ 89500.

a. $54450

Explanation:

principal - 2018 installment = balance

2,710,000 - 895,000 = 1,815,000

From this amoutn we solve for the accrued interest from Sep 1st 2018 to Dec 31th 2018

outstanding principal x rate x time = interest

1,815,000 x 0.09 x 4/12 = 54.450‬

we should make the point that rate and tiem should be expresses in the same metric as the rate is annual we express time in portion of a year.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%