Answer: $2,720
Step-by-step explanation:
Assuming the payment will be done in 2021 on August 31, that means that the loan period is a year.
In this case, the interest should be apportioned per month. There are four months in 2020 that the loan was active for so these months should have an adjustment for interest:
Total interest = 12% * 68,000
= $8,160
Monthly rate is:
= 8,160 / 12 months
= $680
There are 4 months in 2020 so the interest for 2020 is:
= 680 * 4
= $2,720
