Question: Hi, I need someone to verify my answer: A long-term note for $60,000 was taken out from the bank on March 6. The loan is

Hi, I need someone to verify my answer:

A long-term note for $60,000 was taken out from the bank on March 6. The loan is for two years with an interest rate of 6% repayable at maturity.

Book on June 30 th the interest for the first half of the year?

Note payable = 60,000

Interest = 6%

Time in days = March 6th thru June ( first half of the year) = 25 +30 +31+ 30 = 116 for March 6th = 31-6 = 25

Interest = principal * rate * time = 60,000 * 6% * 116/365 = $1,144.11

Thanks

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