Answer:
amount of cash needed to pay back the note payable plus any accrued interest on May 1, 2022 is $103000
Explanation:
Accrued interest is the interest that have been gained by a company but have not been paid as of the date the balance sheet was entered, this is usually reported in account Interest Payable. Notes Payable is shows the amount of principal owed as of when the balance sheet entry was recorded while the Interest Payable shows the amount of interest that a company owes as of the balance sheet date.
Given that the number of months n = 6 months = 6 / 12 years.
amount of cash needed to pay back the note payable plus any accrued interest on May 1, 2022 = $100000 + ($100000 × 6% × 6/12 year) = $103000
