Answer :
Answer:
2021, $4,500: 2022, $ 6,000; and 2023 $1500
Explanation:
In 2021, the company will recognize an interest for nine months.
Using the simple interest formula, the firm will recognize
Interest = p x r x t
i=$50,000 x 12/100 x 9/12
=50,000 x0.12 x 0.75
=$4,500.
In 2022, the company should recognize an interest for 12 months/ one year
=$50,000 x 12/100 x1
=50,000 x 0.12 x 1
=$6,000
In 2023, the company should recognize an interest for( 24-(12+9 )months
=$50,000 x 0.12 x 3/12
=$6000 x 0.25
=$1500