Answer:
$1,073
Explanation:
The computation of the interest due is shown below"
= Total amount borrowed × interest rate × number of months ÷ total months in a year
= $13,000 × 11% × 9 months ÷ 12 months
= $1,073
The five months are calculated from April 1 to December 31. We assume the books are closed on December 31.
Simply we apply the simple interest formula so that the correct amount can come
