A $ 45 comma 000 , threeminus month, 12 % note payable was issued on December 1, 2018. What is the amount of accrued interest on December 31, 2018? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

The correct answer is $312.5.

Explanation:

According to the scenario, the computation of the given data are as follows:

The interest amount after one month of issue considered as accrued interest.

So, Face value = $45,000

interest rate = 12%

Period = 1 month

So, we can calculate the accrued interest by using following formula:

Accrued interest amount = (FV * rate) : 12

= ($45,000 * 12%) : 12

= $312.5