Answer:
$36,000
Explanation:
Data provided as below:-
Received amount = $600,000
Notes receivable percentage = 12%
Receiving in exchange = Nine-month
From 1 Oct to 31 Dec = 3 Months
The computation of interest earned is shown below:-
Interest Earned = Received amount Ă— Notes receivable percentage Ă— Number of months
= $600,000 Ă— 12% Ă— 6 Ă· 12
= $600,000 Ă— 12% Ă— 0.5
= $36,000
So, we have applied the above formula to compute the interest earned.