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.

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