HdG, Inc Accepts a $200,000, 8% Note from Aberdeen Unlimited on on April

HdG, Inc. accepts a $200,000, 8% note from Aberdeen Unlimited on April 1, 2019, and lends money to Aberdeen. Aberdeen agrees to pay 5 equal annual payments on this note beginning March 31, 2020. The market rate on the date of issuance of this note was 8%. HdG has a fiscal year end of December 31. How much Interest Revenue will HdG record on March 31, 2020, the first annual installment payment date?

A) $4,000
B) $16,000
C) $1,333
D) $8,000

Correct Answer:

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