NWA Air Charter signed a four-month note payable in the amount of $20000 on September 1. The note requires interest at an annual rate of 9%. The amount of interest to be accrued at the end of September is $150. $200. $600. $1800.

$594

Explanation:

The computation of amount of interest is shown below:-

Interest to be accrued at the end of September = (Amount × Interest on annual rate) × Four month note payable ÷ Months in a year

= ($20,000 × 9%) × 4 months ÷ 12

= $1,800 × 0.33

= $594

Therefore we consider four months note payable. Here as per the question the option is not available.

explanation:

the contractual interest rate is the interest the borrower must pay and the interest the lender receives, or more simply, it is the interest rate stated on a bond whereas the market interest rate is “the investors demand for loaning funds”. therefore, bonds can either be sold at a premium, face value, or discount.