ABC Company borrowed $100,000 on January 1, 20X1. Interest is 6% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3? Group of answer choices $106,000 $6,000 $118,000 $18,000
ABC Company borrowed $100,000 on January 1, 20X1. Interest is 6% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3? Group of answer choices $106,000 $6,000 $118,000 $18,000
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
Related questions
Question
ABC Company borrowed $100,000 on January 1, 20X1. Interest is 6% payable each December 31. They are borrowing the money for three years. On December 31 20X3, the principal and the last interest payment will be due. What is their interest expense on December 31, 20X3?
Group of answer choices
$106,000
$6,000
$118,000
$18,000
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